Question

Julie is purchasing a home for $169,000.00. Her loan has been approved for a 30-year fixed-
rate loan at 5 percent annual interest. She will pay 20 percent of the purchase price as a down
payment. What is the total interest she will pay on her loan?
$135,200.87
$142,613.78
$126,168.64
$122,877.92

Answer 1

Answer:

Julie

The total interest she will pay on her loan is nearly:

= $126,168.64

Explanation:

a) Data and Calculations:

Cost of purchasing a home = $169,000

Downpayment (20% * $169,000) = $33,800

Amount of loan = $135,200 ($169,000 - $33,800)

Interest rate per annum = 5%

From an online financial calculator:

Loan Amount  135200

Loan Term  30  years

0  months

Interest Rate  5  

Compound  

Annually (APY)

Pay Back  Every Year  

 

Results:

House Price $169,000.00

Loan Amount $135,200.00

Down Payment $33,800.00

Total of 360 Mortgage Payments $261,281.82

Total Interest $126,081.82 on a monthly basis

Mortgage Payoff Date Jun. 2051

Payment Every Year   $8,794.95

Total of 30 Payments   $263,848.62

Total Interest   $128,648.62 on a yearly basis