Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of:

A. $207,270.95

B. $207,720.59

C. $207,720.95

D. $207,270.59

My solution to the problem is as follows:

260000 *20%=52000 ao rest maount=208000

now 6.5% for 25%

now P=208000 and rate 6.5%

apply

p×(1+r/100)−x(1+r/100)
where x is instalment

You can now get the answer from the choices given after solving for x

I hope my answer has come to your help. God bless and have a nice day ahead!

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Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of: A. $207,270.95 B. $207,720.59 C. $207,720.95 D. $207,270.59

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