Question

Kerri takes out a mortgage for $55,000 at 9% for 25 years. What are her monthly payment, the total amount paid, and the cost of the mortgage?Chart is to help awnser qeustion

Answer 1

Kerri takes out a mortgage for $55,000 at 9% for 25 years.

Therefore, from the data given on the monthly payments for mortgages, her monthly payment is

`\text{ \$461.56}`

The total payment will be

`Total\text{ payment=Monthly payment }*12* Number\text{ of years}`

Therefore,

`Total\text{ payment=461.56}*12*25=\text{ \$138468}`

Hence, the total amount paid is

`\text{ \$138,468}`

The cost of the mortgage will be;

`Cost\text{ of mortgage=Total amount - Principal amount}`

Therefore,

`Cost\text{ of mortgage=\$138,468-\$55,000=\$83468}`

Hence, the cost of the mortgage is

`\text{ \$}83,468`

Final answers

Monthly payment

The total amount paid

The cost of the mortgage