*Financial Algebra* [Work Is Shown]

Twyla and Tony have a 30/5 balloon mortgage for $389,900 with a rate of 4.85%. How much will they pay in interest over the life of the loan?

$81,373.41

$92,263.82

$107,536.50

$121,390.73
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* MY WORK *
http://www.wolframalpha.com/input/?i=B%3D389900%5B%28%281%2B0.0040416667%29%5E%2812*30%29-%281%2B0.0040416667%29%5E%2884%29%29%2F%28%281%2B0.0040416667%29%5E%2812*30%29-%281%29%29

Question

*Financial Algebra* [Work Is Shown]

Twyla and Tony have a 30/5 balloon mortgage for $389,900 with a rate of 4.85%. How much will they pay in interest over the life of the loan?

 $81,373.41

 $92,263.82

 $107,536.50

 $121,390.73
-----------
* MY WORK *
http://www.wolframalpha.com/input/?i=B%3D389900%5B%28%281%2B0.0040416667%29%5E%2812*30%29-%281%2B0.0040416667%29%5E%2884%29%29%2F%28%281%2B0.0040416667%29%5E%2812*30%29-%281%29%29

anonymous · Answer

Do I plug back in 341843 ?

amistre64 · Answer

um, 84 is for a 7 year duration, this is a 5 year duration

anonymous · Answer

then whats is 5 year duration ?

amistre64 · Answer

to determine the amount of interest; you subtract the loan amount from the payments made

amistre64 · Answer

12 months a year at 5 years is .... 60 months

amistre64 · Answer

total payments is equal to payments made over 5 years + balloon payment

anonymous · Answer

5 + 30 ?

amistre64 · Answer

60 payments of 2057.47 (123448.20)  + the balance remianing after 5 years of (357272) - original loan (389900) = interest paid

amistre64 · Answer

about 90821 in iterest

amistre64 · Answer

id go with the 92 maybe

anonymous · Answer

i = 92

amistre64 · Answer

the 92000 might be what they are looking for