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Ludmilka [50]
3 years ago
13

Brett has a 30 year fixed rate mortgage for $112500 with monthly payments of $603.92. The annual interest rate is 5% what is the

total cost of the principal and interest for this not rounded to the nearest dollar
Mathematics
1 answer:
LUCKY_DIMON [66]3 years ago
4 0

Answer:

a. Total cost of the principal = $217,411.20

b. Interest for the mortgage loan = $104,911.20

Step-by-step explanation:

Total cost of the principal = Monthly payment * Number of years * Number of months in a year = $603.92 * 30 * 12 = $217,411.20

Total cost of the principal of the loan includes the mortgage loan amount and the interest for the mortgage loan. Therefore, the interest for the mortgage loan can be calculated as follows:

Interest for the mortgage loan = Total cost of the principal - Mortgage loan amount = $217,411.20 - $112,500 = $104,911.20

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