Question

Randall is purchasing a home priced at $220,000. He agrees to 4.75%

interest over 20 years, and the bank tells him that after his down payment, his
monthly payment will be $1,299.42. What will the total of all of Randall's
payments be over the lifetime of the mortgage?

Answer 1

$311860.8

Explanation:

We are given;

Interets; I = 4.75% = 0.0475

Monthly payments; P = 1299.42.

Time period; n = 20 years or 240 months

Since he pays 1299.42 every month, then after 240 months, he has paid;

1299.42 × 240 = $311860.8