Based on the amount to be paid per month, the size of the loan you can afford is $142,792.19.
The total amount you pay to the loan company is $342,000.
The interest on the money is $199,207.81.
<h3 /><h3>What is the size of the loan?</h3>
The size of the loan is the present value associated with that loan payment that you can afford:
950 = (7/12% x Present value) / ( 1 - (1 + 7/12%)⁻⁽³⁰ ˣ ¹²⁾
950 = (7/12% x Present value) / 0.8767
Present value = $142,792.19
The total amount of money paid is:
= Number of periods x Payment per period
= 30 years x 12 months per year x 950
= $342,000
The interest is:
= 342,000 - 142,792.19
= $199,207.81.
Find out more on interest payments on loans at brainly.com/question/13005100
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