Question

Suppose the total interest that will be paid on 35 year mortgage from a home loan of $110,000 is going to be $340,000. What will be the payments each month if the payments are to pay off both the loan and the interest?

Answer 1

The answer is $1071.43.

Step-by-step explanation

First, you need to know that with regards to this problem, loan and interest sums at $450,000 ($100,000+$340,000).

Next, divide it by 35 in order to find how much the payments will be on a per year basis.

$450,000/35 = $12857.14

Finally, divide it by 12 to find the monthly payments.

$12857.14/12 = $1071.43