Question

The Fisher family bought a house for $191,000. They paid $40,000 down and took out a 15 year mortgage for the remaining balance at 5.25%, compounded monthly.
(a) What is their monthly payment?
(b) How much interest did they pay over the entire loan?

Answer 1

i = .0525/12 = .004375
n = 12*15 = 180
P(1 - 1.004375^-180)/.004375 = 151000
solve for p