Respuesta :
Answer:
Total interest is $149,528.31
Step-by-step explanation:
In the first place,Tom already has 25%*$300,000=$75,000
This implies that the mortgage amount=$300,000-$75,000=$225,000
In order to ascertain the total interest Tom would pay it would necessary to know the total amount Tom would have to pay back in respect of the mortgage since the total interest is the difference between total amount repayable less the present worth of the mortgage of $225,000
FV=PV*(1+r)^n
FV is the future worth of the mortgage i.e total amount repayable
PV is the present worth of $225,000
r is the rate of interest of 2% yearly,but 0.17% monthly(2%/12)
n is the number of month it would take Tom to repay the mortgage i.e 25 years multiplied by 12 300 months
FV=$225,000*(1+0.17%)^300=$ 374,528.31
Total interest=$ 374,528.31-$225,000=$149,528.31
