Jack and Laurie Worthington bought a house for $162,900. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim. (a) Find the Worthingtons' down payment. (b) Find the amount that the Worthingtons borrowed from their bank. (c) Find the amount that the Worthingtons borrowed from the seller.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Jack and Laurie Worthington bought a house for $162,900. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim.
(b) Find the amount that the Worthingtons borrowed from their bank.
(c) Find the amount that the Worthingtons borrowed from the seller.
(d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.)
(e) Find the Worthingtons' monthly interest payment to the seller.
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