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You borrow $199,000 to buy a house. the mortgage rate is 5.5 percent, compounded monthly. the loan period is 30 years, and payments are made monthly. if you pay for the house according to the loan agreement, how much total interest will you pay?

Respuesta :

LifeOnlOVE
Multiply amount w/ percent 199000 x 5.5 = 10945 

The total amount of interest we have to pay is [tex]\$ 833290.17[/tex]

Compound interest :

Given that,

You borrow $199,000 to buy a house. the mortgage rate is 5.5 percent, compounded monthly.

Principal[tex]P=199000,r=5.5/12,t=30*12=360 month[/tex]

              Amount,[tex]A=P(1+\frac{r}{100} )^{t}[/tex]

Substitute values in above equation.

                    [tex]A=199000(1+\frac{5.5}{1200} )^{360} \\\\A=199000*5.19\\\\A=1032290.18[/tex]

Interest amount is,

                            [tex]=A-P\\\\=1032290.18-199000\\\\=\$833290.17[/tex]

Thus, the total amount of interest we have to pay is [tex]\$ 833290.17[/tex]

Learn more about the compound interest here:

https://brainly.com/question/24924853

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