(a) The total amount they ended up paying for the house includes the down payment and the monthly payments. The down payment was $41,000. The monthly payments were $3004.14 for 15 years, which is a total of 12 x 15 = 180 payments. So, the total amount paid in monthly payments is 180 x $3004.14 = $540,145.20. Therefore, the total amount they ended up paying for the house is $41,000 + $540,145.20 = $581,145.20.
(b) The amount of interest they paid on the mortgage can be calculated by subtracting the amount of the mortgage from the total amount they paid for the house. The amount of the mortgage is the total cost of the house minus the down payment, or $397,000 - $41,000 = $356,000. So, the amount of interest they paid is $581,145.20 - $356,000 = $225,145.20.
The Smiths bought a
$397,000
house. They made a down payment of $41,000 and took out a mortgage for the rest. Over the course of 15 years they made monthly payments of
$3004.14 on their mortgage until it was paid off.
(a) What was the total amount they ended up paying for the house (including the down payment and monthly payments)?
(b) How much interest did they pay on the mortgage?
1 answer
3 answers