Question

Diego has purchased a $159000 home with a 30-year mortgage at 5.05%. He can make a monthly payment if $1300. If he were to make this each month, how long will it take him to pay off his mortgage?

Answer 1

It will take approximately 359 months, or about 29.91 years, to pay off the mortgage.

Step-by-step explanation:

To calculate how long it will take to pay off the mortgage, we can use the formula for the number of payments in a mortgage:

N = log1+r((P*r)/M)

where N is the number of payments, P is the principal (loan amount), r is the monthly interest rate, and M is the monthly payment.

Using the given values:

N = log1+0.0505((159000*0.0505)/1300)

N = log1.0505(8134.95)

N ≈ 358.73

Rounding up, it will take approximately 359 months to pay off the mortgage, which is about 29.91 years.