Final answer:
The monthly payment on the loan is approximately $457.33. The total interest paid over the 30-year payment plan is approximately $88,238.73.
Step-by-step explanation:
To calculate the monthly payment on a loan, we can use the formula:
Monthly Payment = P * r * (1 + r)^n / ((1 + r)^n – 1)
Where P is the principal amount, r is the monthly interest rate, and n is the total number of payments.
For this loan, we have P = $69,500, r = 7.2% / 100 / 12 = 0.006, and n = 30 * 12 = 360 (30 years and 12 payments per year).
Plugging these values into the formula, we get:
Monthly Payment = $69,500 * 0.006 * (1 + 0.006)^360 / ((1 + 0.006)^360 – 1) ≈ $457.33
So, the monthly payment is approximately $457.33.
To calculate the total interest paid over the 30-year payment plan, we can subtract the principal amount from the total amount paid.
Total Interest Paid = Monthly Payment * n – P = $457.33 * 360 – $69,500 ≈ $88,238.73
Therefore, the total interest paid over the 30-year payment plan is approximately $88,238.73.