The Johnson family is planning to buy a home. They have some money for a down payment already. They see a home they like and compute that they would need to borrow $213,000 from a bank over a 30-year period. The APR (interest) is 6.75%. What is the monthly payment, to the nearest cent (Google "mortgage calculator" and use it to calculate the monthly payment) ? What is the total of all of the monthly payments over the 30 years? What is her total interest for the 30 years?

1) Monthly pmts (R) = ?

R=An*i : [1 - (1+i) ^-360]

R=213,000*0.0675/12 : [ 1 - (1 + 0.0675/12) ^-360]

=$ 1,381. 51

2) Totoal monthly pmts = $ 497,345.02

3) Interest = $ 284,345.02

Explanation:

An=213,000

t=30 yrs,

j=6.75%

m=12

---> i=j/m, i=0.0675/12

---> n=mt, n=12*30, n=360

find

1) Monthly pmts (R) = ?

R=An*i : [1 - (1+i) ^-360]

R=213,000*0.0675/12 : [ 1 - (1 + 0.0675/12) ^-360]

=$ 1,381. 51

2) Total monthly pmts (contribute amount) = ?

Total monthly pmts = n * R,

=360*1,381.51

=497,345.02

3) Interest = nR-An

=497,345.02 - 213,000

=284,345.02