Credit and Borrowing question (1 Viewer)

[Kozak92]

I'm stuck on this one question which has me stumped. Rest of my answers are awesomely correct but I can't for the life of me figure it out. Its probably something really simple but my minds in relax mode after 8.30..

Ying Yang wants to buy a house for 150,000. She has saved some money for a deposite and will borrow the rest at 8%p.a. She will replay the loan over fifteen years, paying 1195 monthly.

iv) How much will she borrow?
v) How much has she saved for a deposit?

Answers are:

Spoiler

iv) 125,000
v) 25,000

 

[Makdadddy]

iv. How much will she borrow?

She's paying $1195 a month. So you look at the table and go to 8% & 15 Years, so that's $9.56 per thousand per month. Divide $1,195 with $9.56 and you get 125. Meaning she borrowed $125,000.

v. $150,000 - $125,000 = $25,000