Question

Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

Answer 1

I believe it is C....I could always be wrong...but i used a mortgage calculator :) <span />

Answer 2

Answer:

The correct answer is option A

Step-by-step explanation:

$M = P \frac{(r (1+r)^n}{(1+r)^{n-1} }\\= 48,000 \frac{(0.11 (1+0.11)^15}{(1+0.11)^{15-1} }\\\\= 6576$

The total finance charges

$= 48,000 + 6,576\\= 54, 576$

The correct answer is option A