Question

Frank currently rents an

apartment for $700 per month.
he is considering purchasing a
$125,000 condominium, he has
been approved for a 30-year
term mortgage with a 5.25%
interest rate use technology to
create a loan amortization
model.
what is frank's monthly
mortgage payment? what is the
total interest he will pay on the
loan? what is the total of all
loan payments he will make?
what is the difference between
Frank's monthly loan payment
and his monthly rent? match
the amount to the statement

Answer 1

9514 1404 393

Answer:

• monthly payment $690.25
• total interest $123,490
• total repaid $248.490
• difference from rent $9.75

Explanation:

Frank's monthly payment will be $690.25.

The total of all payments will be $690.25 × 360 = $248,490.00.

The interest Frank will pay is $248,490 -125,000 = $123,490.00.

The difference between Frank's rent and his loan payment is ...

$700 -690.25 = $9.75