Question

The home that Hilda wants to buy sells for $213,000. She plans to make a 5% down payment and borrow the balance at 7.67% for 25 years. Her monthly mortgage payments will be $1,517.80. What total interest will Hilda pay over 25 years?

Answer 1

Explanation:

She makes an initial payment of 5% = 0.05 × $ 213000 = $ 10650

she made monthly payment of $ 1517.80

total amount paid for the mortgage = $ 1517.80 × 25 years = $ 455340

amount borrowed = $ 213 000 - $ 10650 = $ 202350

total interest paid = total amount paid - total amount borrowed = $ 455340 - $ 202350 = $ 252990

Answer 2

$252,990

Explanation:

Cost of the Home=$213,000.

Hilda makes a down payment of 5%, 5% of $213,000 =$10,650

Amount Borrowed=$213,000-10,650=$202,350

Monthly Payment=$1,517.80.

Number of Payment =25 Years X 12 =300 Payments

Total Payments = 300 X $1,517.80=$455340

Interest Paid by Hilda =Total Payment-Amount Borrowed

=$455,340-202,350

=$252,990