Question

URGENT!!!! HELP PLEASE!!!!!! 40 POINTS AVAILABLE

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

`\large\boxed{\large\boxed{\$ 251,618.40}}`

Step-by-step explanation:

The formula to calculate the monthly payments for a fixed interest mortgage is:

`Payment=L* (i(1+i)^n)/((1+i)^n-1)`

Where:

• Payment is the monthly payment

• L is the amount of the loan: $150,000

• i is the monthly interest rate: 3.8%/12 = 0.038/12

• n is the number of months: 30×12 = 360

Substituting:

`Payment=\$ 150,000* ((0.038/12)(1+0.038/12)^(360))/((1+0.038/12)^(360)-1)`

`Payment=\$ 698.94`

Now multiply the monthly payments by the number of payments:

• Total payment = $698.94 × 360 = $251,618.40