114
QuizMultiple Choice

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Question 114 • Financial Math - MA2007

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?

Answer
A
$12,120
B
$18,650
C
$27,975
D
$37,300

Explanation

Using the mortgage payment formula with a 6.5% annual rate over 30 years, a monthly payment of $1,060.93 corresponds to a loan of about $167,850. Subtract the loan amount from the $186,500 purchase price: $186,500 − $167,850 = $18,650. Therefore, the down payment was $18,650, choice B.

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