Question

In: Finance

You buy a house at $255000. You pay $25000 down and you take out a mortgage...

You buy a house at $255000. You pay $25000 down and you take out a mortgage at 4.45% compounded monthly on the balance for 30 years. 1. find monthly payment. 2.find total amount of interest you will pay for 30 years 3. created authorization table with payment number, monthly payment, interest per month, portion to principal, principal at the end of the year.

Expert Solution

Beginning balance = house price-down = 255000-25000=230000

Where

Interest paid = Beginning balance * Monthly interest rate

Principal = Monthly payment – interest paid

Ending balance = beginning balance – principal paid

Beginning balance = previous Month ending balance

total payment=Monthly payment*number of Month

=1158.5531*360

=417079.116

Total interest paid= total payment-period 1 beginning balance

=417079.116-230000

=187079.116

jeff jeffy answered 1 year ago

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