Question

Help??

Darby bought a house for $445,000. She financed $356,175 of the purchase price with a 25-year, fixed-rate mortgage with a 7.15% interest rate. What is the total cost of the principal and interest after 25 years?

a. $765,468.00
b. $956,364.00
c. $774,442.25
d. $967,577.25

Answer 1

total sum of the payments of course.

how much is a monthly payment?

Answer 2

Is there a formula that goes with this?

Answer 3

yes, its in your materials

Answer 4

payment formula ...

Answer 5

Would it be P = r(PV)/1-(1+r)^-n?

Answer 6

Thanks. Hope im right. :)

Answer 7

it not D, and your formula looks correct

Answer 8

I never use that form tho, ive never liked it

my form goes like this:

\[Bk^n\frac{k^n-1}{k-1}=P\]
we have our loan amount as B
our compounding setup is k
and n is the number of compounding periods

Answer 9

356175k^(25*12)(k-1)/(k^(25*12)-1), k=1+.0715/12

http://www.wolframalpha.com/input/?i=356175k%5E%2825*12%29%28k-1%29%2F%28k%5E%2825*12%29-1%29%2C+k%3D1%2B.0715%2F12

then we simply add up all the payments made of 25 years

Answer 10

If you take any random answer from a spammer, your bound to 'not get it right'

Answer 11

Ok thanks! So I just take $2551.56 and multiply it by 25? Sorry, I really suck at math...

Answer 12

@amistre64

Answer 13

Wait. Thats not one of my answer choices... That was probably wrong, huh?

Answer 14

25 years of payments, 12 a year

25*12*P should get us where we need to be

Answer 15

it was almost right lolo

Answer 16

Oh! Its A! Right?

Answer 17

765... yeah, thats what my calcs get me

Answer 18

Yay! Thank you!!!

Answer 19

good luck