Question

Benjamin has purchased a $105,000 home with a 30-year mortgage at 4.75%.

He can make a monthly payment of $1000. If he were to make this payment

each month, how long will it take him to pay off his mortgage?

Answer 1

Benjamin has purchased a $105,000 home with a 30-year mortgage at 4.75%.

=>Total amount of mortgage:

M = 105000 x ( 1 + 4.75/100)^30 = 422483.98$

If he were to make this payment each month, he would need an amount of time to pay off his mortgage:

T = 422483.98/1000 =422.5 months = 35.2 years

Hope this helps!

:)