Question

The jacobs family is planning to buy a home they have some money for. Down payment already they see a home they like and compute that they would need to borrow 213,000 from a bank over a 30-year period the apr is 3.75%

3 part question
A. What is the monthly payment to the nearest 10th
b. What is total if all of the monthly payments over the 30 years
C. What is her total interest for the 30 years

Answer 1

Explanation:

A. To calculate the monthly payment, we can use the formula for a fixed-rate mortgage:

M = P * (r*(1+r)^n) / ((1+r)^n - 1)

where:

M = monthly payment

P = principal (amount borrowed) = $213,000

r = monthly interest rate = APR / 12 = 0.0375 / 12 = 0.003125

n = total number of payments = 30 years * 12 months/year = 360

Plugging in these values, we get:

M = 213000 * (0.003125*(1+0.003125)^360) / ((1+0.003125)^360 - 1)

M ≈ $988.32

So the monthly payment, rounded to the nearest 10th, is $988.30.

B. The total amount paid over the 30-year period would be the monthly payment multiplied by the total number of payments:

Total = M * n

Total = $988.30 * 360

Total = $355,788.00

So the total amount paid over 30 years would be $355,788.00.

C. To calculate the total interest paid over the 30-year period, we can subtract the principal from the total amount paid:

Total Interest = Total - P

Total Interest = $355,788.00 - $213,000

Total Interest = $142,788.00

So the total interest paid over the 30-year period would be $142,788.00.