How much is used to repay the loan

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This morning, you borrowed $450,000 to buy a house. The APR for your mortgage is 3.6%. The loan is to be repaid in equal monthly payments over 30 years. The first payment is due one month from today. (Please find using formulas if possible)

Formulas:

r = (apr / 12) and c = monthly payments

PV of an Annuity = (c / r) (1 - (1 / ((1 + r) ^ t)) )

FV of an Annuity = (c / r) ( ((1 + r)^t) - 1)

a) How much is your monthly mortgage payment?

b) How much of the 121st payment is interest? How much is used to repay the loan?

c) How much total interest will you pay on this loan?

Reference no: EM131317111

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