Answer: Less than $100,831
Step-by-step explanation:
There is an equation for the calculation monthly payment which is:
x = p × r × (1+r)^n / (1+r)^n - 1
where,
p= the amount of loan, which is $155,000.
r = monthly interest rate, which is (4.4/12)/100 = 0.00367
n = number of months for paying back, which is 20 × 12 = 240
Since we have all the values, we plug them in and solve.
x = 155,000 × 0.00367 × (1.00367^240) / (1.00367^240) - 1
x = $972.27
Therefore, the monthly payment is approximately $972.3. We csn now multiply it by the number of months in order to get total payment:
$973.3 × 240 = $233,352
Therefore, the total amount, which is the loan plus the interest, will be 233,352 dollars.
To find the amount of interest, we subtract the loan from total amount:
= $233,352 - $155,000
= $78,352
