Answer:
The answer to the question is
The total principles + interest payment is $64,854.00
Step-by-step explanation:
To solve the question, we not that
Home mortgage value = $58000
Interest rate, r = 7.4 % annually = 7.4/12 % monthly or 0.62 % monthly
Duration of payment = 3 years = 3 × 12 =36 months
Monthly payment is given by
[tex]M = P\frac{r(1+r)^n}{(1+r)^n-1}[/tex] = [tex]58000\frac{0.00062(1.00062)^{36}}{(1.00062)^{36}-1}[/tex] = $1,801.5
Cumulative interest payed is given by
M×n - P = 1801.5 × 36 - P =$6, 854
Total principles + interest payment = M × n = $64,854.00
