Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessa’s monthly payments are $1,595.85. How much was Vanessa’s down payment?

Use the mortgage payment formula to find the amount borrowed. With a monthly interest rate of 0.0625 ÷ 12 and 360 payments, a payment of $1,595.85 corresponds to a mortgage of about $259,185. Subtract the mortgage from the $268,500 purchase price: $268,500 − $259,185 = $9,315 (about $9,314.45 using the unrounded mortgage amount). The down payment is choice A, $9,314.45.

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