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?

Question

anonymous · Answer

@kropot72

anonymous · Answer

@shifuyanli

anonymous · Answer

@amistre64

amistre64 · Answer

total payments - original loan amount

amistre64 · Answer

so we need to know payment amount, and balloon amount

anonymous · Answer

ok so do i use the equation for monthly payment which is

amistre64 · Answer

5 years of monthly payments yes ... and i never use the text formula  but if it makes sense to you then by all means

amistre64 · Answer

my formula is:
$$P=Bk^n\frac{k-1}{k^n-1}$$
which simplifies but  i think the simplification loses something along the way.

anonymous · Answer

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