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?

Question

anonymous · Answer

please help!!

anonymous · Answer

flvs ?

anonymous · Answer

yeah *shooting myself* i dont want the answer, i just want help

anonymous · Answer

I'm taking the same course -,- do you know the formula for this problem ?

anonymous · Answer

no, im just starting mortgage, its the pretest

anonymous · Answer

M=P[(i(1+1)^n*t)/(1+i)^(n*t)-1)] <---

anonymous · Answer

that is so confusing, fml

amistre64 · Answer

the total cost of a loan is the total amount of payments made ....

how may payments are made over 40 years?

anonymous · Answer

M= Monthly payments
P= The principal
I= Interest rate expressed as (r/n)
N= # of compounding year
T=The length of the loan in years

amistre64 · Answer

you dont need to use the formula for determining the payment amount ... that is already given to you as part of the problem ....

anonymous · Answer

this is why i hate this course

amistre64 · Answer

you simply need to add up all the monthly payments that were made over the 40 years ...

amistre64 · Answer

since the payments are made each month;  how many months are in 1 year?

anonymous · Answer

so is it 421848?

amistre64 · Answer

yes

anonymous · Answer

yay, got it, it was a lot easier then it seemed lol

amistre64 · Answer

they like to throw in alot of useless information to see how well you can actually read and parse the correct information is all :)

anonymous · Answer

okay, thanks!