House payments work the exact same way except banks usually give you 15 to 30 years to pay it off.
What would your monthly payment be on a house if you took a loan out for $85,000 with an APR of 7.1% and you were going to pay it back over a term of 30 years on a monthly basis?
Then, determine the amount actually paid to the bank and the total amount of interest.
Answers
Given : a loan out for $85,000 with an interest rate of 7.1%
a term of 30 years on a monthly basis
To Find : amount actually paid to the bank and the total amount of interest.
Solution:
P = $85,000
R = 7.1 % per annum = 7.1/12 % per month
n = 30years = 30 *12 = 360 Months
EMI Formula = [P x (R/100) x (1+(R/100)ⁿ]/[(1+(R/100)ⁿ-1].
EMI = [85,000 x (7.1/1200) x (1+(7.1/1200)³⁶⁰]/[(1+(7.1/1200)³⁶⁰-1]
=> EMI = 571.23 $
Paid = 360 * EMI
Paid = 2,05,641.78
Interest = 1,20,641.8
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Answer:
$571.23 Monthly - $205,641.78 Actually Payed
Step-by-step explanation:
I don't overwork it like the other person. Yw