Owen took out a mortgage of $ 75 800 to purchase a house in London. He agrees to repay the mortgage over 20 years with equal monthly payments of $653.02 each. The interest rate is 8.5%/a, compounded monthly. His final payment must be increased by $ 0.25 to pay off the mortgage. The interest he will pay over the life of the mortgage is?

Question

Owen took out a mortgage of $ 75 800 to purchase a house in London.  He agrees to repay the mortgage over 20 years with equal monthly payments of $653.02 each.  The interest rate is 8.5%/a, compounded monthly.  His final payment must be increased by $ 0.25 to pay off the mortgage.  The interest he will pay over the life of the mortgage is?

anonymous · Answer

is this a future value or a present value?