SOLUTION: You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 7% interest.
a) How big of a loan can you afford?
$
b) How much total money will you pa
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Question 1163417: You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 7% interest.
a) How big of a loan can you afford?
$
b) How much total money will you pay the loan company?
$
c) How much of that money is interest?
$
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
is the monthly payment, 
is the principal amount of the loan, 
is the interest rate per month, expressed as a decimal )
, and 
is then number of payment periods 
.
^n}{\(1\,+\,r\)^n\,-\,1}\))
Solving for in terms of everything else:
^n\,-\,1}{r\(1\,+\,r\)^n}\))
Plug in the numbers you know and do the arithmetic. The total money paid is the number of payments times the amount of a payment. The amount that is interest is the total amount paid minus the original principal.
John
My calculator said it, I believe it, that settles it
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