Question

SOS HELP PLEASE

Shannon finances $189,000 with a 20/7 balloon mortgage at 6.25%. How much will she pay for principal and interest over the life of the loan?
$261,951.94
$264,100.53
$266,751.42
$497,322.00

Answer 1

total amount interest and principal is $263333.4

Explanation:

given data

amount = $189000

rate = 6.25 % = 0.0625/12 = 0.005208

time 20 = 20 × 12 = 240

time = 7 = 7 × 12 = 84

to find out

principal and interest

solution

we find here for 20 year and then 7 year

so amount = principal ( 1- rate)^-t / rate

189000 = principal ( 1- 0.005208)^-240 / 0.005208

principal = 1381.45

and

for 7 year

interest = amount (rate)^t - principal((1+rate)^t -1) / rate

interest = 189000 (0.005208)^84 - 1381.45((1+0.005208)^84 -1) / 0.005208

interest = 147291.60

so

total amount interest and principal = 147291.60 + 1381.45

total amount interest and principal = $263333.4

Answer 2

ANSWER: Total amount is a)$261,951.94

Explanation:

Shannon finances $189000

mortgage 0.0625/12 = 0.005208

Duration 20 × 12 = 240

Duration 7 × 12 = 84

For 20

Shanon finances = principal ( 1- mortgage)^-D /mortagage

189000 = principal ( 1- 0.005208)^-240 / 0.005208

principal = 1381.45

For 7

interest = Shanon finances (mortgage)^t - principal((1+mortage)^t -1) / mortgage

interest = 189000 (0.005208)^84 - 1381.45((1+0.005208)^84 -1) / 0.005208

interest = 147291.60

total amount plus interest = 147291.60 + 1381.45

l = $261,951.94