May someone walk me through this problem. I have no clue what the formula is either.

Brady has a 20-year fixed rate mortgage for $215,500 with monthly payments of $1,305.89. The annual interest rate is 4%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?

Question

May someone walk me through this problem. I have no clue what the formula is either.

Brady has a 20-year fixed rate mortgage for $215,500 with monthly payments of $1,305.89. The annual interest rate is 4%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?

amistre64 · Answer

the total cost of a loan is equal to the number of payments that are made.

how many payments are made over 20 years?

anonymous · Answer

240 ?
20*12

amistre64 · Answer

240 is good

what would you consider we do with that number now?

anonymous · Answer

Hmm okay.
If I=PRT
I= Unknown
P= 1305.89 ?
R= .04
T= 240 ?


IDKay _.._ Do you multiply all three of them ?

amistre64 · Answer

no, it is really simpler than that.

Since they already tell you how much you have to pay each month,  then the total amount of payments is just 240 times (monthly payment).

amistre64 · Answer

i dont see in the question where they ask to separate principal from interest; but if you had to, then you just subtract the original loan amount (the principal) from the total cost (remainder is interest paid)

anonymous · Answer

If they tell you all of that already, then why do they add all of them unnecessary numbers ?! -.-

amistre64 · Answer

lol,  i ask the same question in my accounting class.  It is simply so that you develop a sense of picking out the relevant information.

amistre64 · Answer

in practice, you are given a lot of irrelevant material and asked to sort it out to find a solution.  you have to have the ability to discern the good stuff from the rest of it.

anonymous · Answer

I am very much displeased wit math as of right now . It is to early for them to play m ind games. Thats y i have a shirt that says " Dear math, I dont feel like solving yur problems i have my own."  Plus its obvious that i dont care to find out Y X is equalivalient to multiple numbers...

amistre64 · Answer

:)  yeah, but this question isnt math perse, its accounting (or finance).  Math is just applied to it to determine a solution.

anonymous · Answer

True. Im not in normal math im in Advanced Quantative Reasoning (:

amistre64 · Answer

good luck ;)

anonymous · Answer

Lol thanks.