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URGENT!!!! HELP PLEASE!!!!!! 40 POINTS AVAILABLE

Ms. Moore is purchasing a house and needs to finance a $150,000 mortgage from the bank with an annual percentage rate (APR) of 3.8% she is financing it over 30 years and making monthly payments. What is the total amount Ms. Moore will pay back to the bank (to the nearest dollar)?

Answer :

Edufirst

Answer:

           [tex]\large\boxed{\large\boxed{\$ 251,618.40}}[/tex]

Explanation:

The formula to calculate the monthly payments for a fixed interest mortgage is:

     [tex]Payment=L\times \frac{i(1+i)^n}{(1+i)^n-1}[/tex]

Where:

  • Payment is the monthly payment
  • L is the amount of the loan: $150,000
  • i is the monthly interest rate: 3.8%/12 = 0.038/12
  • n is the number of months: 30×12 = 360

Substituting:

       [tex]Payment=\$ 150,000\times \frac{(0.038/12)(1+0.038/12)^{360}}{(1+0.038/12)^{360}-1}[/tex]

       [tex]Payment=\$ 698.94[/tex]

Now multiply the monthly payments by the number of payments:

  • Total payment = $698.94 × 360 = $251,618.40

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