Question

Artie is financing a condominium for $313,000. He gets a 30-year, fixed rate mortgage with a rate of 5.275%. How much interest will he pay over the life of his loan?

Answer 1

310,969 based on a quizlet i found

Answer 2

$302956.4

Explanation:

Given that:

• Principle (A): $313,000
• Number of years: 30 = 30*12 = 360 months
• Rate of 5.275% = 0.05275 /12 = 0.00434 per month

We need to find out the monthly payment:

`P = A((i)/(1-(1+i)^(-n)))`

<=>
`P = 313000((0.0043)/(1-(1+0.0043)^(-360)))` = 1710.99

Total payment:

T = nP

T = 360 ×1710.99 = $615969.4

The amount of interest he will pay over the life of his loan is:

I = T – A

= $615969.4 - $313000

= $302956.4