Answer:
Total cost of the house = $725,880
Step-by-step explanation:
This can be calculated as follows:
Down payment = $345,000 * 20% = $69,000
Amount borrowed = $345,000 * (100% - 20%) = $276,000
The total amount of loan repaid can be calculated using the following formula:
A = p(1 + rt) .................... (1)
Where;
A = Total amount of loan repaid = ?
p = Principal or amount borrowed = $276,000
r = annual interest rate = 4.6% = 0.046
t = number of years = 30
Substitute the values into equation (1), we have:
A = $276,000 * (1 + (0.046 * 30)) = $656,880
The total cost of the house can now be calculated as follows:
Total cost of the house = Down payment + Total amount of loan repaid = $69,000 + $656,880 = $725,880
