Question

The Johnson family is planning to buy a home. They have some money for a down payment already. They see a home they like and compute that they would need to borrow $213,000 from a bank over a 30-year period. The APR (interest) is 6.75%. What is the monthly payment, to the nearest cent (Google “mortgage calculator” and use it to calculate the monthly payment)? What is the total of all of the monthly payments over the 30 years? What is her total interest for the 30 years?

Answer 1

M≈ 986.40

$355104

$142104

Step-by-step explanation:

Monthly payment= {P(r/12)(1+r/12)^12t}/{(1+r/12)^(12t)-1}
M = {213000(0.0375/12)(1+0.0375/12)^12(30)}/{(1+0.0375/12)^(12(30)-1}
M≈ 986.40

Total monthly payments for 30 years=986.40 x 360 = $355104
Total interest for the 30 years= 355104 /213000 = $142, 104

Answer 2

1) Monthly pmts (R) =?

R=An*i : [1-(1+i)^-360]

R=213,000*0.0675/12 : [ 1 - (1+ 0.0675/12)^-360]

=$ 1,381. 51

2) Totoal monthly pmts = $ 497,345.02

3) Interest =$ 284,345.02

Step-by-step explanation:

An=213,000

t=30 yrs,

j=6.75%

m=12

---> i=j/m, i=0.0675/12

---> n=mt, n=12*30,n=360

find

1) Monthly pmts (R) =?

R=An*i : [1-(1+i)^-360]

R=213,000*0.0675/12 : [ 1 - (1+ 0.0675/12)^-360]

=$ 1,381. 51

2)Total monthly pmts (contribute amount)=?

Total monthly pmts =n * R,

=360*1,381.51

=497,345.02

3) Interest= nR-An

=497,345.02 - 213,000

=284,345.02