Lydia bought a home for $140,000. she put 20% down with a mortgage rate of 7.5% for 25 years. what are her yearly payments? a. $1,776.00 b. $12,415.20 c. $9,932.16 d. $9,329.61

The correct option is C. $9,93216

Step-by-step explanation:

Consider the provided information.

Lydia bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years.

That means now she need to pay only 80%.

140000 × 80 %= $112,000

Therefore she borrowed $112,000.

Mortgage rate of 7.5%=0.075 per year.

Monthly rate of interest =

Number of number of payments is:12(25) = 300

We can calculate the monthly payment c by using the formula:

Where, r is the monthly rate of interest.  P is the borrowed amount.  

N loan's term.

Substitute the respective values in the above formula.

Hence, the monthly payment is $827.67.

We need to find yearly payment, therefore.

$827.67×12≈$9932.04

Hence, the correct option is C. $9,93216

the answer will be the last one