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An executive wishes to take out a $1,200,000 mortgage. The yearly interest rate on the loan is 1.95% and the loan is for 20 years. Payments will be made monthly. Calculate the total interest payable.
Round your answer to the nearest thousand dollars.
Do NOT round until you have calculated the final answer.

Respuesta :

Answer


Solution
1.95% is also equal to 0.0195
20 is the years interest rate was running

1,200,000x0.0195x20=468,000
So the total payable interest is $468 as we rounded to the nearest thousand dollars.

Answer: 6042.23

Step-by-step explanation:

P0=d(1−(1+rk)−Nk)(rk).

We have P0=$1,200,000,r=0.0195,k=12,N=20, so substituting in the numbers into the formula gives

$1,200,000=d(1−(1+0.019512)−20⋅12)(0.019512),

that is,

$1,200,000=198.602327d⟹d=

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