9514 1404 393
Answer:
- loan: $157,823
- repaid: $378,000
- interest: $220,177
Step-by-step explanation:
For a loan value of 1, the monthly payment on a 30 year loan at 7% is ...
A = (0.07/12)/(1 -(1 +0.07/12)^(-12·30)) ≈ 0.00665302495
Then the amount repaid after 360 payments is ...
360A = 2.39508898 . . . times the principal amount
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a) For a monthly payment of $1050, the principal can be ...
$1050/0.00665302495 ≈ $157,823
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b) The amount repaid to the loan company is ...
$157,823×2.39508898 ≈ $378,000
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c) The amount that is interest is ...
$378,000 -157,823 = $220,177
