Danny bought a house for $215,000. She financed $189,375 of the purchase price with a 15-year, fixed-rate mortgage with a 6.15% interest rate. What is the total cost of the principal and interest after 15 years?

Question

amistre64 · Answer

well, what is the total number of payments made on the loan?

anonymous · Answer

a) $335,317.05
b) $290,419.20
c) $329,716.80
d) 295,351.95

anonymous · Answer

I don't really remember how to do these questions to be honest.

amistre64 · Answer

find a monthly payment to start with ... you should have a way to do that in your course materials.

anonymous · Answer

How does that help me find the total cost of the principal and interest?

amistre64 · Answer

what is the total cost of anything you buy?  its the amount of money you give for it ....

so, how does knowing how much we pay a month for it tell us about the total cost for it?

amistre64 · Answer

if you give me $10 a week, for 4 weeks to by my nintendo 64 system ... what is the total cost to you?

anonymous · Answer

40 bucks.

amistre64 · Answer

yeah, total number of payments made, times the payment amount.

total cost of a loan is the sum of all the payments you make.

amistre64 · Answer

regardless, we need to use a monthly payment formula for this.  i need you to find that formula.

anonymous · Answer

I don't know what the formula is though.

amistre64 · Answer

then that is what you need to study ... search your materials, or google it.

anonymous · Answer

Okay, thanks.

amistre64 · Answer

yw.  monthly payment is the key,  after that its just basic arithmetic like the $40 example.

12*15*(monthly payment) = (total paid for loan)