Answer:
The month payment amount is $897.589
Interest amount is $61,566
Step-by-step explanation:
Given as :
The price of the house = $125,000
The down payment amount for house = 20% of total price
i.e The down payment amount for house = 20% × $125,000
Or, The down payment amount for house = [tex]\dfrac{20}{100}[/tex] × $125,000
Or, The down payment amount for house = $25,000
Now, Balance amount = total price - down payment
Or, Balance amount = $125,000 - $25,000
Or, Balance amount = $100,000
So, The balance amount is bring finance
The finance principal amount = p = $100,000
The rate of interest applied = r = 3.25%
The time period of mortgage = t = 15 years = 15 × 12 = 180 months
Let The Amount of mortgage after 15 years = $A
From Compound Interest method
Amount = Principal × [tex](1+\dfrac{\textrm rate}{100})^{\textrm time}[/tex]
Or, A = p × [tex](1+\dfrac{\textrm r}{100})^{\textrm t}[/tex]
Or, A = $100,000 × [tex](1+\dfrac{\textrm 3.25}{100})^{\textrm 15}[/tex]
Or, A = $100,000 × [tex](1.0325)^{15}[/tex]
Or, A = $100,000 × 1.61566
Or, A = $161,566
So,The Amount of mortgage after 15 years = $161,566
Interest applied = Amount - principal
Or, I = $161,566 - $100,000
∴ Interest = $61,566
Again
The month payment amount = [tex]\dfrac{\textrm amount after 15 years}{number of months of mortgage}[/tex]
i.e The month payment amount = [tex]\dfrac{161566}{180}[/tex]
Or, The month payment amount = $897.589
Hence The month payment amount is $897.589 and interest amount is $61,566 . Answer
