SOLUTION: You can afford a $1350 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 1169250: You can afford a $1350 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 Solver92311(821) (Show Source): You can put this solution on YOUR website!
The formula to calculate a monthly payment for a mortgage is:
^{nt}}{\(1\,+\,\frac{r}{n}\)^{nt}\ +\ 1}\])
where 
is the principal amount of the loan, 
is the interest rate expressed as a decimal, 
is the number of months in a year, and 
is the number of years in the term of the loan.
You know everything but the principal amount, so solve for
^{nt}\ +\ 1}{\frac{r}{n}\(1\,+\,\frac{r}{n}\)^{nt}}\]})
You can do your own arithmetic.
The total amount paid to the mortgage company (presuming you keep the loan to term and you never refinance) is the payment amount times the number of payments that will be made during the term of the loan (number of payments per year times the number of years)
The interest paid is the total amount paid minus the original principal.
John
My calculator said it, I believe it, that settles it
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