Question

Stephen has just purchased a home for $149,000. A mortgage company has approved his loan application for a30-year fixed-rate loan at 5.00%. Stephen has agreed to pay 25% of the purchase price as a down payment.Find the total interest Stephen will pay if he pays the loan on schedule.B Click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amountfinanced.The total interest is $(Round to the nearest cent as needed.)

Answer 1

Given that Stephen purchased a home for $149,000, and a mortgage company approved his loan application for a 30-year fixed rate at 5%.

If he pays a 25% down payment, this implies that the amount he paid as a down payment is evaluated as

`\begin{gathered} 25\%\text{ of \$149000} \\ =(25)/(100)*149000 \\ =\$37250 \end{gathered}`

Thus, the amount to be financed is evaluated as

`\begin{gathered} 149000-37250 \\ =\$111750 \end{gathered}`