Mark M. answered • 06/10/15
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To calculate the monthly payments:
A = p(r)(1 + r)n / [(1 + r)n - 1], where A = monthly payment, p = principal, r = rate, n = number of payments
A = 60000(0.00358)(1.00358)360 / [(1.00358)360 - 1]
A = 214.80(3.62) / (3.62 - 1)
A = 214.80(3.62) / 2.62
A = 214.80(1.38)
A = 296.42
The amount paid is 360($296.42) = $106712.64
Word of advice, even if you have the correct amount, let your girlfriend win.
Roman B.
Thank you, and unfortunately, I'm letting her win
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06/10/15
Amanda B.
Good advice, but no way the total cost of a $60,000 mortgage is $928,800. For that to be true, his interest rate would need to be over 50%.
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06/10/15
Mark M.
Yes, thought of that and am checking my use of the formula.
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06/10/15
Amanda B.
I think you're missing the rate over number of payments per year. So r = .0043/12. Monthly payment should be around $297.
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06/10/15
Mark M.
Just thought of that also! Shall go up and revise.
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06/10/15
Roman B.
06/10/15