Paul lands a home mortgage of $58,200 at a 7.40% interest rate. He plans to pay this after 3 years. What will the total principal + interest payment be?

Question

asked May 11, 2021 46.1k views

1 Answer

Rlb · Answer 1 · 2021-05-16T17:31:37+0000

Answer:

$72,100

Explanation:

To calculate the total principal+interest payment, you can use the formula to find the future value:

FV=PV(1+i)^n

FV= Future value

PV= Present value= $58,200

i= Interest rate= 7.40%

n= Number of periods of time= 3 years

Now, you can replace the values on the formula:

FV=58,200*(1+0.0740)^3

FV=58,200*(1.0740)^3

FV=72,100

According to this, the answer is that the total principal + interest payment will be $72,100.