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Math

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The Chavara family buys a house for $225,000. They pay $50,000 down and take out a 30-year mortgage on the balance. Find their monthly payment and the total amount of interest they will pay if the interest rate is 6%.

  • Math -

    I will assume the rate is 6% per annum compounded monthly
    i = .06/12 = .005
    n = 30x12 = 360

    outstanding balance = 225000-50000 = 175000

    let the payment be P

    175000 = P[ 1 - 1.005^-360 ]/.005

    solve for P
    (I got 1049.21)

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