Question 1076755
1)The house is 200000. The down payment is 50000, bringing the value of the loan to 150000. The following formula is used to calculate the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n months at a monthly interest rate of c. [If the quoted rate is 6%, for example, c is .06/12 or .005].
P = L[c(1 + c)^n]/[(1 + c)^n - 1]. So:
P=150000 [.03(1+.03)^40]/[(1+.03)^40 -1]
P=150000 [0.04326237789046288227786713810852]
P=R 6489.357 as the quarterly payment
2) 6489.357 x 40=R 259574.267 in total payments.
3) 259574.267-150000=R 109574.267 in interest payments. &#9786;&#9786;&#9786;&#9786;