Question

Suppose that the total interest that will be paid on a 20-year mortgage from a home loan of $100,000 is going to be $420,000. What will be the payments each month if the payments are to pay off both the loan and the interest (rounded to the nearest hundredth)?

Answer 1

Answer:

$1800

Step-by-step explanation:

Assuming that there is no downpayment, 20 years has 20*12=240 months since each year has 12 months

Total payment being $420, 000 then monthly payment will be $420, 000/240 months=$1750 per month

Rounding off to the nearest hundred, this is approximately $1800

Therefore, the monthly payment will be approximately $1800