Final answer:
Dustin will make 210 payments to pay off his mortgage. Over 40% of the total payment Dustin pays will be interest. Only 15% of the total payment Dustin will pay will be principal. The total payment Dustin will make is $300,120. Dustin’s APR is 6%.
Step-by-step explanation:
To find out if Dustin will make 360 payments to pay off his mortgage, we can divide the total loan amount by the monthly installment. In this case, $300,000 / $1,432 = 209.36. Since Dustin cannot make a fractional number of payments, he will actually make 210 payments.
To determine if over 40% of the total payment Dustin pays will be interest, we need to calculate the total interest paid. The total interest paid is the total payment made minus the loan amount. In this case, $1,432 x 210 - $300,000 = $300,000. Therefore, the statement is false.
To check if only 15% of the total payment Dustin will pay will be principal, we need to calculate the total principal paid. The total principal paid is the total payment made minus the total interest paid. In this case, $1,432 x 210 - $300,000 = $192,720. Therefore, the statement is false.
To calculate the total payment Dustin will make, we can multiply the monthly installment by the number of payments. In this case, $1,432 x 210 = $300,120. Therefore, the statement is false.
Since none of the statements are true, none of the options provided are correct.