Question

Danielle bought a house for $215,000. She financed $189,375 of the purchase price with a 15-year-fixed-rate mortgage with a 6.1% interest rate. What is the total cost of the principal and interest after 15 years?

A. $335,317.05
B. $290,419.20
C. $329,716.80
D. $295,351.95

Answer 1

Total cost of the house = $215,000
Amount financed through mortgage = $189,375
Amount paid through other means (such as cash) = 215,000-189,375 = $25,625
Rate = 6.1% = 0.061
Number of years = 15 years

Monthly payment, M = P[i(1+i/12)^12*15]/[(1+i/12)^12*15 -1] = 189,375[0.061/12(1+0.061/12)^12*15]/[(1+0.061/12)^12*15 - 1] = $1,608.30
Total amount paid = $25,625 + (M*12*15) = $25,625 + $289,494.56 = $315,119.56

Seems the options given don't match the correct answer.