Question

Ashley Harrison takes out a $100,000 mortgage. The total amount of interest for 30 years is $90,000. What is the payment per month?

Answer 1

The monthly payment will be 527.78

Answer 2

Monthly payment = $527.78

Explanation:

Given : Ashley Harrison takes out a $100,000 mortgage. The total amount of interest for 30 years is $90,000.

To find : What is the payment per month?

Solution : Ashley Harrison takes out a $100,000 mortgage. Amount for 30 years $90,000.

Since the total paid for 30 years is :

100000 + 90000 = 190000

The monthly payment will be:

n= 12×30 = 360

`\text{Monthly payment}=\frac{\text{Total amount}}{n}`

`(190000)/(360)=527.78`

Therefore, Monthly payment = $527.78