Tyrell bought a house for $186,500. he has a 30 year mortgage with a fixed rate of 6.5%. tyrell’s monthly payments are $1,060.93. how much was tyrell’s down payment?
a.
$12,120
b.
$18,650
c.
$27,975
d.
$37,300

Option B - $18,650

Step-by-step explanation:

Given : Total amount = $186,500

Time(t)= 30 year

Rate(r)=6.5%=0.065

Monthly payment (P)=$1,060.93

Formula of monthly payment = Amount/discount factor

P=A/D

Discount factor(D) =

Now, first we find the amount

n(number of periodic payment)=30×12= 360 months

i(periodic interest rate)=

i=0.005416

D=

=

 =

 =

 =158.22

⇒

∴

Down payment = Total amount-amount

                         =  $186,500-$167849.73

                          =$18650

Therefore, option B is correct

2nd one in the first row is correct