Question

* Advance Algebra With Finical Application *
Brant has a 40-year fixed rate mortgage for $245,500 with monthly payments of $878.85. The annual interest rate is 3%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?

$421,848

$252,865

$316,386

$294,600

Answer 1

@jim_thompson5910 is my formula right ? http://www.wolframalpha.com/input/?i=P%3D878.85%28%281%29%2B%280.03%29%29%5E%2812*40%29%2F%28%281%29%2B%280.03%29%29%5E%2812*40%29-1

Answer 2

@NaCl , if you already know the monthly payment, then to get total cost just multiply payment times num of months

--> 480*878.85 = 421,848

Answer 3

@dumbcow how you get 480 :D ?

Answer 4

40 yrs * 12 months

Answer 5

Thank you ! :D