1. Cell phone use is prohibited.
Students:
Today is a red light day.
Cell phone use is prohibited.
This is your warning.

2. Find the amount of the down payment and loan.
1) A condominium is purchased for $ 145, An 8 % down payment is required from the lender.
Down Payment
= $ 145, x 8 %
= $ 11,600.00
Loan Amount
= $ 145, – $ 11,600.00
= $ 133,400.00
2) A home was purchased for $ 275, A 12 % down payment is required from the lender.
Down Payment
= $ 275, x 12 %
= $ 33,000.00
Loan Amount
= $ 275, – $ 33,000.00
= $ 242,000.00

3. Monthly Mortgage Payments
16.02
Monthly Mortgage Payments

4. Mortgage loans are repaid in equal monthly payments over a specific amount of time.
The monthly payment is calculated using the amount of the loan, the interest rate, and the length of the loan.
Lenders that make mortgage loans charge interest. This is the money that borrowers pay for using the lender’s money.
Interest rates vary from lender to lender. Try to find the lender with the lowest interest rate.

5. The monthly payment formula is:
pr( 1 + r ) n
__________________
MP =
( ( 1 + r ) n – 1 )
MP = monthly payment
p = principal amount of the loan
annual interest rate
__________________
r = rate per payment = 12
n = # of payments required to pay off the loan

6. A man obtains a mortgage loan for $ 110,000. 00
A man obtains a mortgage loan for $ 110, The annual interest rate is 3 %. The length of the loan is 25 years. Find the monthly payment.
3 %
_____
p = $ 110,000.00
r = = 12
n = 25 x 12
= 300
Monthly Payment =
(110,000.00)(0.0025)( ) 300
_________________________________
( ( ) 300 – 1 )
= $

7. = Monthly Payment x Number of Payments
The Total Amount Paid
= Monthly Payment x Number of Payments
The Interest Charged
= Total Amount Paid – Amount of the Mortgage
Amount of Mortgage
Monthly Payment
Number of Payments
Total Amount Paid
Interest Charged
$ 95,000.00 $
360 $
$ 180,000.00 $
240
144,000.00
49,000.00
271,920.00
91,920.00

8. A home is purchased for $ 150,000. 00 at an annual interest rate of 3
A home is purchased for $ 150, at an annual interest rate of 3.25 % for 30 years. Find the monthly payment, the total amount repaid, and the interest charged.
(150,000.00)(0.0027)( ) 360
_________________________________
MP =
( ( ) 360 – 1 )
= $
Total Amount Repaid
= $ x 360
= $ 234,716.40
Interest Charged
= $ 234, – $ 150,000.00
= $ 84,716.40