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Roberto bought a $400,000 house, paying 24% down, and financing the rest at 6.2% interest for 30 years. Her

monthly payments are $1861.91. How much will he really pay for her $400,000 house?
Roberto will pay a total of $
for the house.

1 Answer

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Answer:

24% of $400,000 = 0.24 x $400,000 = $96,000

The amount he financed is:

$400,000 - $96,000 = $304,000

To calculate the total amount Roberto will pay for the house, we need to add up the principal (the amount he borrowed), the interest, and any fees or charges. We can use the formula for the monthly payment of a mortgage to find the total amount:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1]

where M is the monthly payment, P is the principal, i is the monthly interest rate (6.2% divided by 12), and n is the total number of payments (30 years times 12 months per year).

Plugging in the values, we get:

$1861.91 = $304,000 [ 0.00516667(1 + 0.00516667)^360 ] / [ (1 + 0.00516667)^360 - 1]

Solving for P, we get:

P = $304,000

So the total amount Roberto will pay for the house is:

$96,000 (down payment) + $1861.91 x 360 (monthly payments for 30 years) = $96,000 + $670,287.60 = $766,287.60

Therefore, Roberto will pay a total of $766,287.60 for the $400,000 house.

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