Complete question :
Laura and Martin obtain a 30-year, $180,000 conventional mortgage at 10.0% on a house selling for $210,000. Their monthly mortgage payment, including principal and interest, is $1566.00. Determine the total amount they will pay for their house. How much of the cost will be interest? How much of the first payment on the mortgage is applied to the principal?
Answer:
$563760 ; $383760 ; $66
Explanation:
Given that:
Monthly mortgage payment = $1566
Period = 30 years
Number of months in period = (30 * 12) = 360
Principal = $180,000
1.)
Total amount paid :
Monthly payment * period
$1566 * 360 = $563760
2.)
Total amount paid = Principal + Interest
Interest = Total amount paid - principal
Interest = $563760 - $180000
Interest = $383760
3)
First payment = 1566
Interest rate = 10% per annum = 0.1 / 12 = 0.0083333
monthly interest: 180,000 * 0.0083333 = 1500
Principal = 1566 - 1500 = $66