Answer:
To find the monthly payment for a 10-year mortgage of $80,000 at an annual interest rate of 6%, we can use the table of monthly payments on a $1,000 loan.
Find the monthly interest rate: Since the annual interest rate is 6%, the monthly interest rate is 6% divided by 12 months, which is 0.06 / 12 = 0.005.
Determine the loan term in months: Since the mortgage is for 10 years, the loan term in months is 10 years multiplied by 12 months, which is 120 months.
Use the table to find the monthly payment factor: Look for the value corresponding to the intersection of the loan term (120 months) and the monthly interest rate (0.005) in the table.
Based on the given information, I don't have access to the specific table you mentioned. However, I can explain the process and provide an example using a similar table or formula.
Suppose the monthly payment factor from the table or formula is 0.085. To find the monthly payment, we can multiply this factor by the loan amount:
Monthly Payment = Monthly Payment Factor * Loan Amount
In this case:
Monthly Payment = 0.085 * $80,000 = $6,800
Therefore, the monthly payment for this mortgage would be $6,800 (the actual value may differ based on the specific interest rate and loan term factors).
To find the total interest paid on the loan, we can calculate the total amount repaid (loan amount + interest) and subtract the original loan amount:
Total Interest Paid = Total Amount Repaid - Loan Amount
Total Amount Repaid = Monthly Payment * Loan Term
In this case:
Total Amount Repaid = $6,800 * 120 = $816,000
Total Interest Paid = $816,000 - $80,000 = $736,000
Therefore, the total interest paid on the loan would be $736,000 (the actual value may differ based on the specific interest rate and loan term factors).
Explanation: