Answer:
$291,016.80
A is correct.
Step-by-step explanation:
You are applying for an 80/20 mortgage to buy a house costing $145,000.
Loan Formula:
[tex]EMI=\dfrac{P\cdot r}{1-(1+r)^{-n}}[/tex]
Case 1:
Loan amount, P = 80% of 145000 = $ 116,000
Rate of interest, r = 4.75% = 0.0475
Time of loan, n = 30 years = 360 months
Substitute the values into formula.
[tex]EMI=\dfrac{116000\cdot \frac{0.0475}{12}}{1-(1+\frac{0.0475}{12})^{-360}}[/tex]
[tex]EMI=605.11[/tex]
Total payment for case 1: 605.11 x 360 = $217,839.60
Case 2:
Loan amount, P = 20% of 145000 = $ 29,000
Rate of interest, r = 4.75% = 0.07525
Time of loan, n = 30 years = 360 months
Substitute the values into formula.
[tex]EMI=\dfrac{29000\cdot \frac{0.07525}{12}}{1-(1+\frac{0.07525}{12})^{-360}}[/tex]
[tex]EMI=203.27[/tex]
Total payment for case 1: 203.27 x 360 = $73,177.20
Total amount of the mortgage = $217,839.60 + $73,177.20
                          = $291,016.80
Hence, The total amount of the mortgage is $291,016.80
