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

I will assume the rate is 6% per annum compounded monthly
i = .06/12 = .005
n = 30x12 = 360
outstanding balance = 22500050000 = 175000
let the payment be P
175000 = P[ 1  1.005^360 ]/.005
solve for P
(I got 1049.21)