Use the information below to answer question 12 and 13
The Williams purchased a home for $240,000. They made a 15% down payment and borrowed the
rest at 5% interest compounded monthly on a 20 year loan. Their monthly payments are $1,346.31
12. How much did the Williams borrow for buying their home?
A) $204,000
B) $238,653.69
C) $36,000
D) $192,000
E) $240,000
13. After making their first payment, how much will the Williams still owe on the house? [Hint: Make the
first line of an amortization table to help answer this question]
A) $239,653.69
B) $203,503.69
C) $202,653.69
D) $238,653.69
