Answer:
a. Her monthly payment is $1618.786418
b. She will pay $312763.1105 interest over the life of the loan
Step-by-step explanation:
Let us revise the rules of the monthly payments and interest
[tex]M.P=\frac{P(\frac{r}{n})}{1-(1+\frac{r}{n})^{-nt}}[/tex]
[tex]I = M.P(nt)- P[/tex]
Where:
∵ Lynn bought a $300,000 house
∵ She was paying 10% down
→ That means the initial amount is 90% of $300,000
∴ p = 90/100 × 300,000 = 270,000
∵ She was financing the rest at 6%
∴ r = 6% = 6/100 = 0.06
∵ There is a monthly payment
∴ n = 12
∵ She was financing the rest for 30 years
∴ t = 30
a.
→ Substitute these values in the first rule to finding the monthly payment
∵ [tex]M.P=\frac{270,000(\frac{0.06}{12})}{1-(1+\frac{0.06}{12})^{-12(30)}}[/tex]
→ Let us use the calculator to find the answer
∴ M.P = $1618.786418
∴ Her monthly payment is $1618.786418
b.
→ Substitute these values in the first rule to finding the second rule
to find the interest
∵ [tex]I = (1618.786418)(12)(30)-270,000[/tex]
→ Let us use the calculator to find the answer
∴ I = $312763.1105
∴ She will pay $312763.1105 interest over the life of the loan
