Helpppp.? How do I solve this.?[:
-Brett has a 30-year fixed rate mortgage for $112,500 with monthly payments of $603.92. The annual interest rate is 5%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?

Question

Helpppp.? How do I solve this.?[:
-Brett has a 30-year fixed rate mortgage for $112,500 with monthly payments of $603.92. The annual interest rate is 5%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?

whpalmer4 · Answer

That's going to be the number of payments * the monthly payment.

Number of payments is number of years * 12 months / 1 year * 1 payment / month

whpalmer4 · Answer

The monthly payment is $$c = \frac{Pr(1+r)^N}{(1+r)^N-1}$$ where $P$ is the principal borrowed, $r$ is the monthly interest rate (expressed as a decima)l, which equals the annual interest rate (expressed as a decimal) divided by 12, and $N$ is the number of payments.

whpalmer4 · Answer

Which we don't need to compute because the problem gives it to us! :-)

Figure out the number of monthly payments in 30 years, multiply by the monthly payment, and round to the nearest dollar.