SOLUTION: You can afford a $1450 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How big of a loan can you afford? b) How much total money will you pay the

Question 1169336: You can afford a $1450 per month mortgage payment. You've found a 30 year loan at 8% 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?

Found 2 solutions by The Troll Kid, Theo:
Answer by The Troll Kid(22) (Show Source): You can put this solution on YOUR website!

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the following financial calculator can help you find the answer easily.

https://arachnoid.com/finance/index.html

here's a display of the results.

inputs are:

future value = 0
number of periods = 30 years * 12 = 360 months
payment amount = -1450 (negative because it's money going out)
interest rate % per period = 8% / 12 = .6666666....
payment at end

output is:

future value = 197,611.07

that's your solution.

you made 360 payments of 1450 each for a total of 522,000.

the mortgage was for 197,611.07

522,000 - 197,611.07 means you paid 324,388.93 in interest over the period of 30 years.

answers to your questions:

a) How big of a loan can you afford?

$197,611.07 rounded to the nearest penny.

b) How much total money will you pay the loan company?

560 * 1450 = $522,000.

c) How much of that money is interest?

$522,000 - $197,611.07 = $324,388.93

RELATED QUESTIONS
You can afford a $200 per month car payment. You've found a 5 year loan at 2% interest.... (answered by Theo)
You can afford a $450 per month car payment. You've found a 5-year loan at 6% interest.... (answered by Theo)
You can afford a $200 per month car payment. You've found a 5 year loan at 2% interest.... (answered by math_tutor2020)
You can afford a $450 per month car payment. You've found a 4 year loan at 3% interest.... (answered by math_tutor2020)
You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 8%... (answered by Theo)
You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 7%... (answered by Solver92311)
You can afford a $1200 per month mortgage payment. You've found a 30 year loan at 7%... (answered by math_tutor2020)
You can afford a $900 per month mortgage payment. You've found a 30 year loan at 6%... (answered by Theo)
You can afford a $900 per month mortgage payment. You've found a 30 year loan at 7%... (answered by Theo)