Question

A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. How many payments will the borrower make over the course of the loan?

Answer 1

$117,687.80

Step-by-step explanation:

First, multiply the monthly payment ($2,042.71) by the total number of payments (180 = 12 payments/year for 15 years). The total paid back is $367,687.80. Then subtract the original loan value: $367,687.80 ‒ $250,000 = $117,687.80.

Answer 2

borrower will have 180 payments

Step-by-step explanation:

given data

time = 15 years

loan amount = $250,000

interest rate = 5.5%

principal and interest payment totaling = $2,042.71

solution

we know that in 1 year = 12 months

and here loan time period is 15 years

and we consider here loan is not paid off early so

borrower payment for = 12 monthly × 15 years

borrower payment for = 180 payment

so borrower will have 180 payments