SOLUTION: You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 7% interest. a) How big of a loan can you afford? $ b) How much total money will you pa

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Question 1163417: You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 7% 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?
$
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


is the monthly payment, is the principal amount of the loan, is the interest rate per month, expressed as a decimal , and is then number of payment periods .



Solving for in terms of everything else:



Plug in the numbers you know and do the arithmetic. The total money paid is the number of payments times the amount of a payment. The amount that is interest is the total amount paid minus the original principal.


John

My calculator said it, I believe it, that settles it