Question

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?

Answer 1

@kropot72

Answer 2

@shifuyanli

Answer 3

@amistre64

Answer 4

total payments - original loan amount

Answer 5

so we need to know payment amount, and balloon amount

Answer 6

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

Answer 7

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

Answer 8

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