Shawn bought a for $100,000. He put 20%down and obtained a mortage for 30years at 5 1/2%, what was the total intrest cost of the loan

Po = 100,000 - 0.2*100,000 = $80,000 =

Initial principal.

P = (Po*r*t)/(1-(1+r)^-t).

r = (5.5%/12) / 100%=0.0045833= Monthly % rate expressed as a decimal.

t = 12mo/yr * 30yrs = 360 Months.

Plug the above values into the give Eq and get:

P = $163,523.23 = Tot paid.

Int. = P - Po =