math
posted by emma on .
Mr. Smith is purchasing a $190000 house. The down payment is 20% of the price of the house.
He is given the choice of:
(A) a 20year mortgage at a rate of 6%.
Find:
(i) The monthly payment: $
(ii) The total amount of interest paid: $

P = (Po*r*t)/(1(1+r)^t).
r = (6%/12) / 100% = 0.005 = Monthly %
rate expressed as a decimal.
t = 12mo/yr * 20yrs = 240 Months.
Po = 0.8 * 190,00 = $152,000.
P=(152000*0.005*240) / (1(1.005)^240
= 182400 / 0.69790 = $261,354.05
Monthly(I+P) = 261,354.05/240 = $1088.98.
Int. = P  Po = 261,354.05  152,000 =
$109,354.05.