SOLUTION: Lou purchases a home for $575,000. He makes a down payment of 15% and finances the remaining amount with a 30-year mortgage with an annual percentage rate of 5.25%. Find his mont

Algebra ->  Finance -> SOLUTION: Lou purchases a home for $575,000. He makes a down payment of 15% and finances the remaining amount with a 30-year mortgage with an annual percentage rate of 5.25%. Find his mont      Log On


   

Question 1075379: Lou purchases a home for $575,000. He makes a down payment of 15% and
finances the remaining amount with a 30-year mortgage with an annual
percentage rate of 5.25%. Find his monthly mortgage payment. How much
principal and interest will he end up paying for his house?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
mortgage is 85% of 575000=488,750
M=488750(1+(.0525/12))^360*(0.0525/12) divided by (1+(0.0525/12)^360-1
don't round until the end
the denominator is 3.814
The monthly payment is $2698.90.
over 360 months (now round to nearest cent), the payments amount to $971602.41.
$488750 is principal
$482852.41 is interest