Question

Bryan and his wife, Jane, can afford $2,273 a month for a monthly mortgage payment.

How much money would they be able to borrow for a 30-year fixed mortgage if the APR is 3.8%.

How much money would they make in payments over the life-time of the mortgage?

How much money would they pay in interest over the life-time of the mortgage if they borrowed as much money as they could on the mortgage?

Round your answer to the nearest cent.

Answer 1

9514 1404 393

Answer:

• borrowed amount: $487,812.89
• total of payments: $818,280.00
• paid in interest: $380,467.11

Explanation:

The formula for figuring the amount that can be borrowed (P) is shown on the first line of the attachment. (The second line rounds it to the nearest cent.) In this formula, ...

a = monthly payment, r = annual interest rate, t = number of years

The amounts requested by the problem statement are shown in the attachment, and above. b is the amount that can be borrowed, p is the total of payments, and i is the interest paid. There are 360 monthly payments in 30 years, so the total paid is 360 times the monthly payment amount.