Answer:
$443,091.5
Explanation:
Given that,
Amount of loan, present value = $185,000
Annual rate of interest, r = 7% ÷ 12
= 0.00583
Time period = 30 years
Therefore,
Monthly payments:
[tex]=\frac{r\times PV}{[1 - (1+r)^{-n}]}[/tex]
[tex]=\frac{0.00583\times 185,000}{[1 - (1+0.00583)^{-30\times12}]}[/tex]
[tex]=\frac{1,078.55}{[1 - (1.00583)^{-360}]}[/tex]
= 1230.81
Total (principle and interest) will be paid over the life:
= Monthly payments × 360
= $1,230.81 × 360
= $443,091.5
