Question

Use the table to determine the total amount paid on a 20 year fixed loan, at 5.5%, of $160,000.

Answer 1

The total cost of the mortgage would be $264,192 or C.

Answer 2

Answer:

Option C- 264,192              

Step-by-step explanation:

Given : The total amount paid on a 20 year fixed loan, at 5.5%, of $160,000.  

To find : The amount  

Solution : From the table we get that monthly payment per $1000 of mortgage when interest rate is 5.5% on a 20-year loan is

Monthly payment per $1000 mortgage is 6.88

Per $1000 the principle is $160

Time in months $=20\times12 = 240$ months

Amount paid for 240 months at principal $160 is

$6.88\times 160\times 240=264192$            

Therefore, Option C is correct.