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Shtirlitz [24]
3 years ago
5

Suppose that the total interest that will be paid on a 2525-year mortgage from a home loan of $130,000$⁢130,000 is going to be $

380,000$⁢380,000. What will be the payments each month if the payments are to pay off both the loan and the interest (rounded to the nearest hundredth)?
Mathematics
1 answer:
lesantik [10]3 years ago
7 0

Answer:

$1,700

Step-by-step explanation:

Given the following :

Period of mortgage = 25 years

Mortgage amount = $130,000

Total interest on mortgage = $380,000

Hence,

Total amount to be paid ( principal + interest) :

($130,000 + $380,000) = $510,000

Total number of months over the 25 years period:

25 × 12 = 300 months

Payment per month:

Total repayment / number of months

= $510,000 / 300

= $1,700 per month

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