A) To determine how big of a loan you can afford, you need to consider the monthly mortgage payment and the interest rate. The monthly mortgage payment is $900, and the loan term is 30 years (or 360 months). The interest rate is 6% per year, but since the loan term is in months, we need to convert it to a monthly interest rate.
Monthly interest rate = Annual interest rate / 12 Monthly interest rate = 6% / 12 = 0.06 / 12 = 0.005
Using a mortgage loan formula, we can calculate the loan amount:
Loan amount = Monthly mortgage payment / (Monthly interest rate * (1 + 1 / (1 + Monthly interest rate) ^ (Loan term in months))))
Loan amount = 900 / (0.005 * (1 + 1 / ((1 + 0.005) ^ 360)))
Calculating this formula will give you the maximum loan amount you can afford.
B) To determine the amount of money you will pay the loan company, you need to calculate the total payments over the loan term. The total payments can be calculated by multiplying the monthly mortgage payment by the number of months in the loan term:
Total payments = Monthly mortgage payment * Loan term in months
Total payments = 900 * 360
C) To determine how much of the total payment is interest, you can subtract the loan amount from the total payments:
Interest = Total payments - Loan amount
Please note that the actual calculations may vary depending on the specific loan terms and conditions. It's always a wise idea to consult with a financial advisor or use online mortgage calculators to get accurate figures for your situation.