Asked by Riley

You can afford a $1200 per month mortgage payment. You've found a 30 year loan at 7.3% interest.

a) How big of a loan can you afford? (Round to the nearest cent, as needed.)
$

b) How much total money will you pay the loan company? (Round to the nearest cent, as needed.)
$

c) How much of that money is interest? (Round to the nearest cent, as needed.)
$
I need Help

Answers

Answered by mathhelper
Assuming the rate is per annum, compounded monthly
i = .073/12 = .006083333..
n = 12(30) = 360
paym = 1200
PV = ?

PV = 1200(1 - 1.00608333...^-360)/.0060833...
=

Once you have that, compare it with
1200(360), the difference would be the interest.
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