Sara is buying a house for $154,230. She made a down payment of $18,630 and will finance $135,600. She gets a 25-yr fixed rate loan with a rate of 7.535%. How much interest will she pay over the life of her loan?
a)$147,318
b)$165,948
c)$188,748
d)$207,378

Question

anonymous · Answer

@e.mccormick

e.mccormick · Answer

http://www.myamortizationchart.com/articles/how-is-an-amortization-schedule-calculated/

e.mccormick · Answer

That shouldbe the correct formula set... hmmm.... Yah, they talk about total interest there.

anonymous · Answer

thanks

e.mccormick · Answer

Hakf the time that is the struggle... finding the right formula!

anonymous · Answer

ya lol

anonymous · Answer

in the equation would n be 25?

e.mccormick · Answer

They key here is they call it amortization.  Once you know that, then finding it is not has bad.  The number you get will be amazingly large....

e.mccormick · Answer

Well, the total paid will be.  Once you subtract the loan amount, it would just be veru large....   n is total number of payments.  25*12.  Monthy, usually.

anonymous · Answer

ok

e.mccormick · Answer

Did you get a monthy of close to 1000?  If so, you are doing this right.

anonymous · Answer

yes