Answer:
a. Her monthly payment is $1618.786418
b. She will pay $312763.1105 interest over the life of the loan
Step-by-step explanation:
Let us revise the rules of the monthly payments and interest
Where:
M.P is the monthly payment
P is the initial value
r is the interest rate in decimal
n is the period
t is the time
∵ Lynn bought a $300,000 house
∵ She was paying 10% down
→ That means the initial amount is 90% of $300,000
∴ p = 90/100 × 300,000 = 270,000
∵ She was financing the rest at 6%
∴ r = 6% = 6/100 = 0.06
∵ There is a monthly payment
∴ n = 12
∵ She was financing the rest for 30 years
∴ t = 30
a.
→ Substitute these values in the first rule to finding the monthly payment
∵
→ Let us use the calculator to find the answer
∴ M.P = $1618.786418
∴ Her monthly payment is $1618.786418
b.
→ Substitute these values in the first rule to finding the second rule
to find the interest
∵
→ Let us use the calculator to find the answer
∴ I = $312763.1105
∴ She will pay $312763.1105 interest over the life of the loan
Step-by-step explanation:
