Question

The price of a home is $300,000. After a 10% down payment, the mortgage is $270,000. If this is financed with a 30-year fixed-rate mortgage at 6%, what is the total interest paid over 30 year

Answer 1

Answer:

The correct solution is "$1618.79".

Step-by-step explanation:

The given values are:

Home price,

= $300,000

Down payment,

= 10%

Mortgage,

= $270,000

Rate,

r = 6%

Time,

t = 30 years

As we know,

⇒ $PV=P[\frac{1-(1+r)^{-n}}{r} ]$

On substituting the values, we get

⇒ $270 000= P[\frac{1-(1+\frac{6}{1200} )^{-12\times 30}}{\frac{6}{1200} } ]$

⇒          $P=1618.79$ ($)