Question

Roberto bought a $420,000 house, paying 18% down, and financing the rest at 5.2% interest for 30 years. Her monthly payments are $1891.14. How much will he really pay for her $420,000 house?

Answer 1

Answer: $674,020.80

Explanation:

Loan amount: $420,000 - $75,600 = $344,400

Monthly interest rate: 5.2% / 12 = 0.004333

Total number of payments: 30 years * 12 months = 360

Monthly payment: $344,400[0.0043333(1 + 0.0043333)^360] / [(1 + 0.0043333)^360 - 1] ≈ $1,872.28

Total cost: $1,872.28 × 360 ≈ $674,020.80