Respuesta :
Answer:
Joe's monthly payment is $661 and his total interest cost is $127710.
Step-by-step explanation:
Joe Levi bought a home for $147,000 and put down 25% and obtained a mortgage for 30 years at 6.00%
So, the amount of down payment [tex]=(\$147000\times 0.25)=\$36750[/tex]]
and the amount of mortgage will be: [tex](\$147000-\$36750)=\$110250[/tex]
Formula for monthly payment: [tex]M= P[\frac{r}{1-(1+r)^-^n}][/tex] , where [tex]M=[/tex] Monthly payment, [tex]P=[/tex] Principal loan amount, [tex]r=[/tex] rate of interest per month and [tex]n=[/tex] total number of months.
Here, [tex]P= \$110250[/tex], [tex]r= \frac{6}{12}\%=0.5\%= 0.005[/tex] and [tex]n= (30\times 12)= 360[/tex] months.
Plugging these values into the above formula, we will get.........
[tex]M= 110250[\frac{0.005}{1-(1+0.005)^-^3^6^0}] \\ \\ M=110250[0.0059955...]\\ \\M=661.00445.... \approx 661[/tex]
So, Joe's monthly payment is approximately $661.
- Total amount paid in 30 years [tex]=(\$661\times 360)= \$237960[/tex]
So, Joe's total interest cost will be: [tex](\$237960-\$110250)=\$127710[/tex]
