Find the indicated amounts for the fxed-rate mortgages Monthly Mortgage for pa T

Question

Find the indicated amounts for the fxed-rate mortgages Monthly Mortgage for pa Tolal paid Interest price of home payment amount rate Years payment S484100| 22% | per $1,000 mortgage 5 25% 35 E click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amount financed The mortgage amount is S (Round to the nearest dollar as needed) The monthly payment per $1 000 S (Round to the nearest cent as needed ) The monthly mortgage payment is S (Round to the nearest cent as needed) The total mortgage payment is s(Round to the nearest cent as needed ) The total interest is S (Round to the nearest cent as needed)

Explanation / Answer

Answer 1 Mortgage amount = Purchase price of home * (1-down payment %) = $484100 * 78% = $3,77,598 Answer 2 Using present value of annuity formula , we can calculate the monthly loan payment PV of annuity = P*{[1 - (1+r)^-n]/r} PV of annuity = present value of annuity i.e.Original Loan amount = $377598 P = annuity i.e.monthly loan payment = ? r = rate of interest per month = 5.25% /12 = 0.004375 n = no.of months = 35 years * 12 = 420 377598 = P*{[1 - (1+0.004375)^-420]/0.004375} 377598 = P* 192.03 P = 1966.32 Monthly payments on this mortgage = $1966.32 The monthly payment per $1000 = $1966.32 / [$377598/$1000] = $5.21 per $1000 Answer 3 Mortgage payment = $1966.32 (refer above calculation) Answer 4 Total paid for Mortgage = $1966.32 * 420 monthly payments = $8,25,852.43 Answer 5 Interest paid = Total payment for mortgage - Original Mortgage balance = $825852.43 - $377598 = $4,48,254.43

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