Answer:
$23950.92
Explanation:
Value of the house = $350,000
Amount you have for Down payment = $50,000
You have to Borrow the remaining amount.
= $300,000 - $50,000
= $300,000
Therefore for the question, we have the following values
Principal = P = $300,000
Time for payment(t) = 30 years
Interest rate (r) = 7% = 0.07
Firstly lets calculate how much she would be paying per month
Type of payment(n) = monthly payment = 12
Mortgage payment formula for a month = P x (r / n) x (1 + r / n)^n(t)] / (1 + r / n)^n(t) - 1
= 300000 x (0.07/12) x (1 + 0.07/12)^12(30)] / (1 + 0.07 / 12)^12(30) - 1
= $1,995.91
Hence, i would be paying $1,995.91 monthly.
But the question specified and asked for annual payments.
Therefore, since 12 months make one year.
My annual payments = $1,995.91 × 12
= $23950.92
Therefore, my payments annually = $23950.92
