Question

What is the total interest you will have paid for the scenario below?
The home you purchased was sold for $141,000 with a fixed APR of 1.035% across 40 years. The down payment required was 6.0%.

Answer 1

Answer:

Total interest you will pay=$3,502.44

Step-by-step explanation:

The interest accrued you will pay can be expressed as;

Interest=Principal×rate×time

where;

Principal=down payment=6% of total amount

Total amount=$141,000

Down payment=(6/100)×141,000=$8,460

Annual rate=1.035%=1.035/100=0.01035

Time=40 years

replacing;

Interest=Principal×rate×time

Interest=8,460×0.01035×40

Interest=$3,502.44

Total interest you will pay=$3,502.44