Which of the following best explains what happens when a company or government issues bonds? A. The company or government pays b
1 answer:
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Answer:
$443,091.5
Explanation:
Given that,
Amount of loan, present value = $185,000
Annual rate of interest, r = 7% ÷ 12
= 0.00583
Time period = 30 years
Therefore,
Monthly payments:
= 1230.81
Total (principle and interest) will be paid over the life:
= Monthly payments × 360
= $1,230.81 × 360
= $443,091.5