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?

Guest Apr 6, 2017

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.

Guest Apr 6, 2017

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