Homework Help: Please Help

Posted by shirley on Monday, May 28, 2012 at 4:12pm.

Suppose that you want to purchase a home for $450,000 with a 30 year mortgage at 6% interest. Suppose that you can put 40% down. Assume that the monthly cost to finance $1,000 is $6.00. What is the total amount of interest paid on the 30 year loan?

Please Help - Henry, Wednesday, May 30, 2012 at 10:28pm
Po = 450,000 - 0.4*450,000 = $270,000 =
Amt. of loan.

P+I=$270,000 * $6.00/$1000 = $1620/mo.
Tot.(P+I). = 1620/mo * 360mo = $583,200
Tot.Int = 583,200 - 270,000 = $313,200

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