Question

Cannon took out a mortgage for $85,290 on his new house. If the interest rate is 8.5 percent and the loan is for 25 years, how much will he pay monthly if he must pay $8.05 per $1000?

What steps should I take here to get my answer?

Answer 1

85 290 dollars is his loan which is for 25 years with 8.5 percent fixed rate.
=> 85 290 * 0.85 = 7249.65 dollars for the interest
=>  85 290 + 7249.65 = 92 539.65 dollars
=> 92539.65 / 25 years = 3701.59 dollars yearly
=> 3701.586 / 12 = 308.47 dollars monthly.