Answer:
The answer is$1006.47
Step-by-step explanation:
(I think you couldn't attach the table with shows the monthly payments per $1000 mortgage for 30 years so I am taking the value to be 6.33)
A family borrows $159,000 at 6.5% for 30 years to buy a home which means that the given figure above shows us the monthly rent and interest in mortgage of $1000.
If the monthly interest rate for 30 years is 6.33 dollars. and we are to borrow $159,000, we just need to multiply 159 by 6.33:
159 x 6.33 = 1006.47
Therefore the monthly rent for 30 years would be $1006.47
If It is simple interest problem, then we can find Total Amount to be repaid after 30 years.
The principal amount is P = $159,000.
Annual Percentage Rate is 6.5%, so R = 0.065
Time of loan repayment is 30 years, so T = 30
We can use Simple Interest formula to find the interest to be paid at maturity of loan.
Interest = Principal x APR x Time
Interest = PRT
Interest = 159000 x 0.065 x 30
Interest = 310,050
Total Amount to repay = Principal + Interest
Total Amount to repay = 159,000 + 310,050
Total Amount to repay = 469,050 dollars.
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If it is monthly payment problem, then we can use Present Value formula to find the monthly payments to be repaid.
We have loan amount, PV = 159000.
r = 0.065; t = 30 years; k = 12 (compounded monthly).
[tex]PV=Pmt*(\frac{1-(1+\frac{r}{k})^{-kt}}{(\frac{r}{k})}) \\\\159000=Pmt*(\frac{1-(1+\frac{0.065}{12})^{-12*30}}{(\frac{0.065}{12})}) \\\\159000=Pmt*(\frac{1-(1.005416667)^{-360}}{(0.005416667)}) \\\\159000=Pmt*(\frac{1-0.143024727}{(0.005416667)}) \\\\159000=Pmt*(\frac{0.856975272}{0.005416667}) \\\\159000=Pmt*(158.2108196) \\\\Pmt = \frac{159000}{158.2108196} =1004.988157 \approx \$1004.99[/tex]
So, monthly payments = $1,004.99
Total amount paid over loan period = 1004.99 x 360 = $361,795.74
Total interest paid over the loan period = $202,795.74
