Question

kandy is financing a $335,000 mortgage for 30 years at a fixed rate of 7.5% what is the total cost of the principal and interest after 30 years?

Answer 1

Given:
F= $335,000
n = 30 years at a fixed rate of i = 7.5%

Required:
the total cost of the principal

Solution:
F = P(1+i)^n
P = F/(1+i)^n
P = 335,000 / (1.0.075)^30
P = 38,264.05