I just have two questions:
1. Brandon has 15-year fixed rate mortgage for $175,500 with monthly payments of $1,480.97. The annual interest rate is 6%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?
2. Sonika has 6.4% fixed rate 40-year mortgage in the amount of $425,000. The total cost of principal and interest is about $1,179,830. Which of the following is closed to Sonika's monthly payment?
1. Well, you have everything you need to find total cost of principal plus interest.
15 years x 12 months =180 months.
180 x $1,480.97 =$266,574.60 - total cost of principal + interest.
2. The second question is the reverse of question #1.
$1,179,830 /(40 years x 12 months=480 months) =$2,457.98 - This is the monthly payment.
Even though you didn't give your multiple choices, the payment agrees with the details given about the mortgage.
