Question

The Morgans bought a $333,000 condominium. They made a down payment of $47,000 and took out a mortgage for the rest. Over the course of 30 years theymade monthly payments of $1714.72 on their mortgage until it was paid off.(a)(b)What was the total amount they ended up paying for the condominium(including the down payment and monthly payments)?$1]How much interest did they pay on the mortgage?I need help with this math problem.

Answer 1

Given: The following on the purchase of a Condominium

`\begin{gathered} Price(Condominium)=333000 \\ Down-payment=47000 \\ Monthly-payment=1714.72 \\ Time=30years \end{gathered}`

To Determine: The total amount they ended up paying for the condominium

Solution

Please note that we have 12 months in a year. The total number of months in 30 years would be

`\begin{gathered} 1year=12months \\ 30years=30*12months \\ 3oyears=360months \end{gathered}`

Total monthly payments would be

`\begin{gathered} 1month=1714.72 \\ 360months=360*1714.72=617299.20 \end{gathered}`

Therefore, the total amount they ended up paying for the condominium would be the addition of the down payment and the monthly payments

`Total-amount(Paid)=47000+617299.20=664299.20`

Hence, the total amount they ended paying for the condominium is $664,299.20

The interest paid on the mortgage would be the difference between the total amount paid and the cost

`\begin{gathered} Interest=(Total-amount-paid)-Cost(condominium) \\ =664299.2-333000 \\ =331299.20 \end{gathered}`

Hence, the interest paid on the Mortgage is $331,299.20