Question

The Carters bought a $252,000 townhome. They made a down payment of $49,000 and took out a mortgage for the rest. Over the course of 15 years they

made monthly payments of $1713.04 on their mortgage until it was paid off.
(a) What was the total amount they ended up paying for the townhome
(including the down payment and monthly payments)?
$
(b) How much interest did they pay on the mortgage?
$

Answer 1

a) $357347.2

b) $105347.2

Explanation:

a) To find the total payment they did, we have to convert 15 years into months as they were paying monthly.

15 years= 15×12= 180 months

Now we have to multiply the monthly amount they paid monthly by 180 months to find out how much they paid in that period monthly.

$1713.04 × 180= $308347.2

Total money paid= 49000+308347.2= $357347.2

b) As the house cost $252000 so any extra payment will be considered as interest.

Interest= 357347.2-252000= $105347.2

Answer 2

(a) $308,347.20

(b) $105,347.20

Explanation:

(a) 15 × 12 × $1713.04 + $49,000 = $308,347.20

(b) $308,347.20 - $203,000 = $105,347.20