You want to purchase a house. You need to borrow $175,000 and can find a 30 year loan that wants monthly payments and 6.24% interest compounded monthly. What is the size of your monthly payment?

Question

anonymous · Answer

HELP

anonymous · Answer

$1076.37 monthly payment

anonymous · Answer

@dhruv567 Assuming that the last payment is the same as all of the others, how much interest did you pay?

anonymous · Answer

you are asking me? I didn't buy house. I just solved your problem.

anonymous · Answer

I know it's the second part of the question. how much interest is paid?

anonymous · Answer

you already have  6.24% interest

anonymous · Answer

not the percent of compounded interest but how much interest is actually paid

anonymous · Answer

I know how to do the problem I just wanted to see if I got the answer right. So I got 387,493.20 for the amount of interest paid because I did 1076.37 x 360. Is that correct?

ranga · Answer

If you know the monthly payment and the total number of such payments, you can calculate the total amount paid.  Subtract the principal and that would be the total interest paid.