Question

Some friends tell you that they paid

$33,991

down on a new house and are to pay

$ 780

per month for

15

years. If interest is

6.9 %

compounded​ monthly, what was the selling price of the​ house? How much interest will they pay in

15

​years?

Selling price of the​ house:

​$______

​(Round to two decimal places as​ needed.)

Answer 1

Selling price of house is   $ 121, 312.89

Interest paid in 15 years is $ 53,078.11

# 1
Selling Price of house	=	Down Payment	+	Present value of monthly payment
	=	33,991.00	+	87,321.89
	=	1,21,312.89
Working:
Present value of monthly payment	=pv(rate,nper,pmt,fv)
	= 87,321.89
Where,
rate	=	6.9%/12	=	0.00575
nper	=	15*12	=	180
pmt			=	-780.00
fv			=	0
# 2
Interest Paid	=	Total repayment	-	Loan amount
	=	(780*180)	-	87,321.89
	=	1,40,400.00	-	87,321.89
	=	53,078.11