SOLUTION: Is it C? I'm checking my answers. Chris is purchasing a house and needs to finance a $150,000 mortgage from the bank with an annual percentage rate (APR) of 3.8% He is finan

Question 1160610: Is it C? I'm checking my answers.
Chris is purchasing a house and needs to finance a $150,000 mortgage from the bank with an annual percentage rate (APR) of 3.8%
He is financing it over 30 years and making monthly payments. What is the total amount Chris will pay back to the bank?
Group of answer choices
A. $501,796
B. $299,998
C. $251,618
D. $150,001

The question is provided in the link here: https://i.imgur.com/vCzSmop.png
Found 2 solutions by MathLover1, jim_thompson5910:
Answer by MathLover1(20850) (Show Source): You can put this solution on YOUR website!

yes, it is C. $
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

We need to calculate the monthly mortgage payment. Do so using this formula
P = (L*i)/( 1-(1+i)^(-n) )

where,
P = monthly payment
L = loan amount = 150000
i = monthly interest rate in decimal form = 0.038/12 = 0.00316666666666667
n = number of months = 30*12 = 360

So we have,
P = (L*i)/( 1-(1+i)^(-n) )
P = (150000*0.00316666666666667)/(1-(1+0.00316666666666667)^(-360))
P = 698.936026491846
P = 698.94
as our monthly payment

Multiply this with 360 to find the total amount Chris pays back
360*698.94 = 251,618.4

Rounded to the nearest whole dollar, the answer is choice C) $251,618. Nice job on getting the correct answer.

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