Respuesta :
Answer: The total interest paid on the mortgage is $179550
Step-by-step explanation:
The initial cost of the property is $300000. If he deposits $30000, the remaining amount would be
300000 - 30000 = $270000
Since the remaining amount was compounded, we would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = 270000
r = 2% = 2/100 = 0.02
n = 12 because it was compounded 12 times in a year.
t = 25 years
Therefore,
A = 270000(1+0.02/12)^12 × 25
A = 270000(1+0.0017)^300
A = 270000(1.0017)^300
A = $449550
The total interest paid on the mortgage is
449550 - 270000 = $179550
Answer: $73, 323
Step-by-step explanation:
First we note that Tom requires a mortgage on $300,000−$30,000=$270,000. To calculate the monthly repayments we must apply the formula for P0 and solve for d, that is,
P0=d(1−(1+rk)−Nk(rk).
We have P0=$270,000,r=0.02,k=12,N=25, so substituting in the numbers into the formula gives
$270,000=d(1−(1+0.0212)−25⋅12)(0.0212),
that is,
$270,000=235.9301d⟹d=$1,144.41.
So our monthly repayments are d=$1,144.41. To calculate the total interest paid, we find out the entire amount that's paid over the lifetime of the mortgage and subtract the principle. The total amount paid is
Total Paid=$1,144.41×12×25=$343,323
and therefore the total amount of interest paid is
Total Interest=$343,323−$270,000=$73,323.
