Final answer:
Aman's monthly payment is approximately $1616.81 and the total amount of interest he will pay is approximately $191,825.80.
Step-by-step explanation:
To find the monthly payment and the total amount of interest paid, we can use the amortization formula:
P = (PV × r) / (1 - (1 + r)^(-n))
Where:
- P is the monthly payment
- PV is the present value of the loan
- r is the monthly interest rate
- n is the total number of payments
In this case, Aman buys a house for $270,000 and pays $60,000 down, so the present value of the loan is $270,000 - $60,000 = $210,000. The interest rate is 5% annually, so the monthly interest rate is 5% / 12 = 0.4167%. The total number of payments is 15 years × 12 months/year = 180 months.
Plugging these values into the formula:
P = (210,000 × 0.004167) / (1 - (1 + 0.004167)^(-180))
The monthly payment comes out to be approximately $1616.81. To find the total amount of interest paid, multiply the monthly payment by the total number of payments and subtract the present value of the loan:
Total interest paid = (P × n) - PV = (1616.81 × 180) - 210,000
This comes out to be approximately $191,825.80.
Aman's monthly payment is approximately $1616.81 and the total amount of interest he will pay is approximately $191,825.80.