Arnold is financing a condominium for $592,000. He gets a 30-year, fixed rate mortgage with a rate of 5.575%. How much interest will he pay over the life of his loan? Round to the nearest dollar.

a) $1,220,119

b) $43,585

c) $181,614

d) $628,119

Question

Arnold is financing a condominium for $592,000. He gets a 30-year, fixed rate mortgage with a rate of 5.575%. How much interest will he pay over the life of his loan? Round to the nearest dollar.

 a) $1,220,119

 b) $43,585

 c) $181,614

 d) $628,119

anonymous · Answer

simple interest = I = PRT
p - principal
R - interest rate in decimal form
t - years

anonymous · Answer

It doesn't work :/

anonymous · Answer

are you able to calculate based on the formula above?

anonymous · Answer

compounded interest???

anonymous · Answer

I'm supposed to use: M=P x i(1+i)^nt/(1+i)^nt-1

anonymous · Answer

and it's compounded: n would equal 12

anonymous · Answer

every time I plug in the numbers it just doesn't work.

anonymous · Answer

oh and i=r divided by n

anonymous · Answer

no n = 30

anonymous · Answer

wouldn't t=30?

anonymous · Answer

n = number of payments so that is 12 s

anonymous · Answer

give me a sec

anonymous · Answer

pls draw the formula out for me

anonymous · Answer

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