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2 answers:
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Answer:
The total amount to be paid for new home is $838,014.72
Step-by-step explanation:
Given as :
The price of the new house = $256,000
The down payment amount = 30% of house price
So, The down payment price = 30% of $256,000
i.e The down payment price = × 256000
Or, The down payment price = $76,800
Now, rest amount is finance
So, The finance Amount = p = $256000 - $76800 = $179,200
The rate of interest applied = r = 7.5%
The time period of finance = t = 20 years
Let The Amount after 20 years of finance = $A
Let The total amount to be paid for new home = $B
<u>Now, From Compound Interest </u>
Amount = Principal ×
Or, A = p ×
Or, A = $179,200 ×
Or, A = $179,200 ×
Or, A = $179,200 × 4.24785
∴ A = $761,214.72
So,The Amount after 20 years of finance = A = $761,214.72
<u>Now, Again</u>
The total amount to be paid for new home = Down payment amount + The Amount after 20 years of finance
Or, B = $76,800 + A
Or, B = $76,800 + $761,214.72
Or, B = $838,014.72
So, The total amount to be paid for new home = B = $838,014.72
Hence, The total amount to be paid for new home is $838,014.72 Answer