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Sebastian and Caroline obtained a 30-year, fixed rate mortgage for $154,850 on a home that cost them $169,900. If the interest rate on the mortgage is 5.57%, what is the total cost of the principal and interest at the end of the mortgage?

$318,970.80

$322,110.60

$349,974.00

$353,416.78

Question

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Sebastian and Caroline obtained a 30-year, fixed rate mortgage for $154,850 on a home that cost them $169,900. If the interest rate on the mortgage is 5.57%, what is the total cost of the principal and interest at the end of the mortgage?
 
$318,970.80 

$322,110.60 

$349,974.00 

$353,416.78

anonymous · Answer

@ankit042 I think it is A, can you confirm?

mathmate · Answer

Can you explain how you got A as the answer?

anonymous · Answer

I used a financial calculaor with the prt formula not sure if its correct though i kept getting different answers

anonymous · Answer

calculator *

ankit042 · Answer

What was your monthly PMT?

anonymous · Answer

what does each one stand for again

mathmate · Answer

I try to understand the queston.
The home costs more than the mortgage, and the monthly payment is not indicated.
Therefore I assume the monthly/yearly payments would pay off the mortgage at the end of 30 years for a principal of $154850.  If he borrowed 169900, and paid 10737.02 per year for a smaller mortgage, then the balance should be around 76515.98.
Do you have a different interpretation of the question to get the answer as A?

anonymous · Answer

No I was just trying different things out

anonymous · Answer

but 76515.98 is not an answer choice of mine.

ankit042 · Answer

@mathmate  Ya question is a bit ambiguous but with the information you can calculate monthly mortgage amount. It comes out to be around 886.03. And with that you get answer as 318,972.30 which is close to A. If you do yearly mortgage then 322,110.58 Which is close to B.