SOLUTION: A home mortgage to finance $26,672. was offered at 9.5% for either 15 or 30 years. Assuming all payments are made on time and the loan is compounded monthly. a) What is the total

Question 433279: A home mortgage to finance $26,672. was offered at 9.5% for either 15 or 30 years. Assuming all payments are made on time and the loan is compounded monthly.
a) What is the total of all payments for the 15 year option? (Principle and Interest)
b) What is the total of all payments for the 30 year option? (Principle and Interest)
Does this look like I am calculating these correctly? A=P*(1+r/12)^(12)(t)
P=$26,672.
r=9.5% or .095
t=15 or 30
a) A=26,672*(1+.095/12)^(12)(15) b) A=26,672*(1+.095/12)^(12)(30)
26,672*(1+.095/12)^180 26,672*(1+.095/12)^(360)
26,672 * 4.134593305 26,672 * 17.0948618
A=$110,277.87 A=$455,954.15
If there is a better way to do this can you show me being sure to show all steps so I can understand.

Answer by katealdridge(100) (Show Source): You can put this solution on YOUR website!
Unfortunately, the values you calculated don't take into account that you've made payments over the years. Therefore, it is not correct. The process to figure this out is lengthy and usually requires an Excel spreadsheet. Sorry, that's all I got for you.
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