Question

Gladys has just purchased a new home. The house was priced at $105,000, and she chose a 40-year mortgage at 5.2%. What will her total cost be?

Answer 1

Her total cost will be 797,661.98

Explanation:

The total cost of the mortgage is simply the accumulated value of the loan amount, 105000 at the end of the 40 year term at an effective rate of interest of 5.2%. We incorporate the compound interest formula; A = P(1+r)^n; A = 105000(1+5.2/100)^40 = 797,661.98

Answer 2

Monthly Payment: $520

Total Interest paid: $144,740

Total Paid: $249,740

Explanation:

Hope this helped :) let me know if you need an explanation because its kinda confusing so i just put in the answers