SOLUTION: Lynn bought a $300,000 house, paying 10% down, and financing the rest at 6% interest for 30 years. a. Find her monthly payments. b. How much interest will she pay over the life o

Algebra ->  Finance -> SOLUTION: Lynn bought a $300,000 house, paying 10% down, and financing the rest at 6% interest for 30 years. a. Find her monthly payments. b. How much interest will she pay over the life o      Log On


   

Question 1149998: Lynn bought a $300,000 house, paying 10% down, and financing the rest at 6% interest for 30 years.
a. Find her monthly payments.
b. How much interest will she pay over the life of the loan?
Found 2 solutions by josmiceli, MathTherapy:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+.9%2A300000+=+270000+
+I+=+P%2Ar%2At+
+I+=+270000%2A.06%2A30+
+I+=+270000%2A1.8+
+I+=+486000+
+I+%2B+P+=+270000+%2B+486000+
+I+%2B+P+=+756000+
+756000+%2F+%28+12%2A30+%29+=+756000+%2F+360+
+756000+%2F+360+=+2100+
(a)
Monthly payments = $2,100
(b)
Total interest paid = $486,000
-------------------------------------
Get a 2nd opinion, too

Answer by MathTherapy(10556) About Me  (Show Source):
You can put this solution on YOUR website!
Lynn bought a $300,000 house, paying 10% down, and financing the rest at 6% interest for 30 years.
a. Find her monthly payments.
b. How much interest will she pay over the life of the loan?
The other person is not even close. How can someone do monthly-payment calculation on a house using SIMPLE INTEREST? The correct monthly payment is: highlight_green%28%22%241%2C618.79%22%29

Now, you need to do some work!

Multiply that monthly payment by 360 (30 * 12 months), and then SUBTRACT the MORTGAGE loan ($300,000 * .9) to get the interest paid over the life of the loan. 

FYI: It is NOT 486,000.