Question

Ms. Moore is purchasing a house and needs to

finance a $150,000 mortgage from the bank
with an annual percentage rate (APR) of 3.8%.
She is financing it over 30 years and making
monthly payments. What is the total amount
Ms. Moore will pay back to the bank?
(to the nearest dollar)

Answer 1

$251,618

Explanation:

Amount = $ 150,000

APR = 3.8 % = 3.8 / 100 = 0.0038

Rate per month = 0.003166

Monthly payment = 30 years = 360 months

Interest = P* r/n (1 + r/n) ∧ nt ÷ (1 + r/n) ∧ nt - 1

The total amount Ms Moore will pay back to the bank =

= $251,618