Brandon has a 15-year fixed rate mortgage for $175,000 with monthly payments of $1,480.97. The annual interest rate is 6%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar

Amortization Solution:

A = P[[r (1+r) ^n]/[ ((1+r) ^n) - 1) ]]

P = $175,000

r =.06/12; divide interest rate by 12 to get monthly interest of 0.005

n=15*12=180; multiply by 12 to get the total number of payments

A = $87500 is the total cost of principal with interest rate of 0.5% monthly