Answer:
$154,430.64
Explanation:
The first step is for us to determine the monthly payment as follows:
Mortgage amount can be found as the present value of all monthly payments, hence, using the formula below we can determine monthly payment as follows:
mortgage amount=monthly payment*(1-(1+r)^-n/r
mortgage amount=$305,500
monthly payment is unknown
r=monthly interest rate=5.75%/12=0.4791667%
n=number of monthly payments in 20years=20*12=240
305,500=monthly payment*(1-(1+0.4791667% )^-240/0.4791667%
305,500=monthly payment*(1-0.31750756 )/0.0047916670
305,500=monthly payment*0.68249244 /0.0047916670
monthly payment=305,500*0.0047916670 /0.68249244
monthly payment=$2,144.87
Number of months that payments have been made=6*12=72
total paid=$2,144.87*72
total paid for 6 years=$ 154,430.64