Question

You can afford a $1500 per month mortgage payment. You've found a 30 year fixed loan at 7.3% interest.
Round all answers to the nearest cent as needed.

a) How big of a loan can you afford? $

b) How much total money will you pay the loan company? $

c) How much of that money is interest? $

Using the following conversions between the metric and U.S. systems, convert the measurement.
Round your answer to 6 decimal places as needed

1 meter ≈≈ 3.28 feet
1 Liter ≈≈ 0.26 gallons
1 kilogram ≈≈ 2.20 pounds

19.621 yd ≈≈  km

Using the following conversions between the metric and U.S. systems, convert the measurement.
Round your answer to 6 decimal places as needed

1 meter ≈≈ 3.28 feet
1 Liter ≈≈ 0.26 gallons
1 kilogram ≈≈ 2.20 pounds

16.595 fl oz ≈≈  cL

Answer 1

Given,

Monthly payment = $1500

Term = 30 years

Interest rate = 7.3% or 0.073

Solution :-

Monthly rate (r) = 0.073/12 = 0.00608333333

Number of months (n) = 30 years x 12 = 360 months

Now,

(a)

Loan amount = Monthly payment/r x [1 - (1 + r)^-n]

= $1500/0.00608333333 x [1 - (1 + 0.00608333333)^-360]

= $1500/0.00608333333 x [1 - (1.00608333333)^-360]

= $1500/0.00608333333 x [1 - 0.11266171292926]

= $1500/0.00608333333 x 0.88733828707074 = $218795.74

(b)

Total money paid = Monthly payment x number of months

= $1500 x 360 months = $540000

(c)

Total interest = Total money paid - Loan amount

= $540000 - $218795.74 = $321204.26