Question

HELP please!!!

Jeanie wants a $100 000 mortgage. She arranged payments for the next 15 years. The bank charges 4.8%/a interest, compounded monthly.
a) how much is each monthly payment
b) how much interest is jeanie paying?

Answer 1

in one month : 13676.57/12=1139.71

the interest on 100000 is: 205148.48-100000=105148.48

Explanation:

A=P(1+r)^t (p is the mortgage, t is the time and r is the rate)

p=100000,t=15*12 month,r=4.8%( or 0.048)

A=100000(1+0.048/12)^(12*15)

A=205148.48 (the number rounded to the nearest hundredth)

205128.48 is the amount she has to pay it after 15 years

in one year : 205128.48/15=13676.57 ( rounded to nearest hundredth)

in one month : 13676.57/12=1139.71

the interest on 100000 is: 205148.48-100000=105148.48