Asked by Ruba
Find the monthly house payments necessary to amorti
ze each loan. Then calculate the
total payments and the total amount of interest paid : $199,000 at 7.01% for 25 years
ze each loan. Then calculate the
total payments and the total amount of interest paid : $199,000 at 7.01% for 25 years
Answers
Answered by
Henry
P = (Po*r*t)/(1-(1+r)^-t)
Po = Initial principal = $199,000
r = (7.01%/12)/100% = 0.00584 = Monthly
% rate expressed as a decimal.
t = 25yrs * 12mo/yr. = 300 Months.
Plug the above values into the given Eq.
and get:
P = $422,328.10
Int.(Tot.) = P-Po = $223,328.10
Monthly Payment = P/t = $1407.76
Int.(1st mo.) = Po*(7.01/12/100)*t = $1162.49(t=1 mo.)
Po = Initial principal = $199,000
r = (7.01%/12)/100% = 0.00584 = Monthly
% rate expressed as a decimal.
t = 25yrs * 12mo/yr. = 300 Months.
Plug the above values into the given Eq.
and get:
P = $422,328.10
Int.(Tot.) = P-Po = $223,328.10
Monthly Payment = P/t = $1407.76
Int.(1st mo.) = Po*(7.01/12/100)*t = $1162.49(t=1 mo.)
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