Question

In order to make money on lones, financial institutions are paid back more than they loan. suppose borrow $350,000 to buy a house and agree to make monthly payments of $1500.56 for 30 years.

a) what is the total amount you pay back?
b)how much do you pay in addition to the original loan amount?

Answer 1

1500.56 x 12 = 18006.72 per year

18006.72 x 30 = 540201.60

540201.60-350000 = 190201.60