Duncan is purchasing a home for $178,000. He makes a 15% down payment and obtains a 15 year fixed rate mortgage loan at 4% annua
l interest. His monthly payments are $1,119.15. H pays an intagible tax of 0.2%. Which of the following is the total cost of principal, interest, down payment, and amount of intagible tax? (show work) A= $228,449.60
B= $201,447.00
C= $228,503.00
D= $201,749.60
1119.15×12=13,429.8 deposits per year cost of principal PVAO=13,429.8×((1−(1+0.04)^(−15))÷(0.04))=149,317.72 interest 13,429.8×15−149,317.72=52,129.28 down payment 178,000×0.15=26,700 intagible tax 178,000×0.002=356
Total cost 52,129.28+356+149,317.72+26,700 =228,503....answer
