Financial Formula

Question

What ' s your monthly payment for a house loan of $200, 000 @ 2.79 % for 30 - years? What ' s the
total interest given to the bank at the end of 30 - years?

Answer 1

The Monthly Payment (M) is:

 

     M = {200,000·(1.0279)³⁰}/360

 

The total interest (I) given to the bank is:

 

     I = M·360 - $200,000

 

Use your calculator to compute the answers.  Round to the nearest penny.