Answer:
Total amount ≈ $115,952.40 (rounded to 2 decimal places)
Explanation:
To calculate the total amount Kyle will pay over 30 years, we need to first determine his annual mortgage payment. We can use the mortgage formula to do this:
M = P * r * (1 + r)^n / ((1 + r)^n - 1)
Where:
M = monthly mortgage payment
P = principal loan amount (in this case, $40,000)
r = monthly interest rate (annual interest rate / 12)
n = total number of payments (loan term in years * 12)
In Kyle's case:
P = $40,000
Annual interest rate = 9% = 0.09
r = 0.09 / 12 = 0.0075
Loan term = 30 years
n = 30 * 12 = 360 payments
Plug these values into the formula:
M = 40,000 * 0.0075 * (1 + 0.0075)^360 / ((1 + 0.0075)^360 - 1)
M ≈ $322.09 (rounded to 2 decimal places)
Now that we have the monthly mortgage payment, we can calculate the total amount paid over 30 years:
Total amount = Monthly mortgage payment * number of payments
Total amount = $322.09 * 360
Total amount ≈ $115,952.40 (rounded to 2 decimal places)
So, Kyle will pay approximately $115,952.40 over 30 years for his mortgage.