Janissa has just purchased a new home. the house was priced at $125,000, and she chose a 40-year mortgage at 5.2%. what will her total cost be?

Price of the house, C = $125,000

Total number of payments, n = 40*12 = 480 months

Monthly rate, i = 5.2%/12 = 0.052/12

Monthly payment, P = C[i (1+i) ^n]/[ (1+i) ^n-1]

Substituting;

P = 125,000[0.052/12 (1+0.052/12) ^480]/[ (1+0.052/12) ^480-1] = $619.40

Total cost = monthly payment*total number of payments = 619.40*480 = $297,312