Question

Anna is buying a house selling for ​$285,00. To obtain the​ mortgage, Anna is required to make a 10​% down payment. Anna obtains a ​30-year mortgage with an interest rate of ​4%.

Answer 1

The total she is paying in interest for the next 30 years is 370, 500

Explanation:

285,000 x 10= 28,500

285,000 x 04= 11,400

11,400 x 30= 342,000

342,000+28,500= 370, 500

Answer 2

m = 1026.67

Explanation:

Selling Price of the House = $225000

Down Payment = 15%

Annual Percentage Rate = 4% or 0.04

Number of Payments per year (n) = 12

Time in years (t) = 30 years

Amount of Mortage = 225000 - 33750 = 191250

Montly Principle and interest payment for the mortage = $1026.67