Question

Using the Mortgage Payment Formula, calculate a monthly mortgage payment for a home with the price...

Using the Mortgage Payment Formula, calculate a monthly mortgage payment for a home with the price of $405,000 using pencil and paper. Your down payment is 10% of your own money apart from the loan. Calculate the total paid for your home after paying the monthly payment for 30 years factoring in the rate of 2.990%. You can use arithmetic. How much money will you pay in interest over 30 years? All Calculations must be shown.

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Answer #1

Based on the information total loan amount would be = 4,05,000 - (4,05,000 * 10%) = 3,64,500 payable over 30 years monthly compounding.

Rate of interest is 2.99% per annum which would be 2.99/12 = .249$ monthly

Period would be 30*12 = 360 months

Formula to compute is on the right side of the table.

Total amount paid in 30 years is 5,52,521

Interest amount is 1,88,021

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