Question

Sara and Don are considering a $130,000 mortgage for 30 years at 4.8% paid monthly. What is their monthly payment. If they pay the minimum each month what is their total payback of this loan and how much interest will they pay.

Answer 1

Answer:Monthly payment is $682.06

Step-by-step explanation:

Answer 2

Answer:

The formula to calculate the final cost:

C = 130000 x (1  + (4.8/100)/12)^(30 x 12) = 547116.69

Minimum payment each month:

M = 547116.69/(30 x 12) = 1519.77

Interest they have to pay: 547116.69 - 130000 = 417116.69 dollar

Hope this helps!

:)