Franklin is buying his 1st house .He is put a $20,000 down payment on the house

Question

Franklin is buying his 1st house .He is put a $20,000 down payment on the house ,but has to take out a mortgage for the remaining $170,000 of the purchase price . The banks has offered him a standard 30-year mortgage with a 5.6% quoted interest rate .
1) what would Franklin 's monthly mortgage payment be ?
2) If Franklin can get a 15-year , $170,000 loan at a quoted interest rate of 5.6% ,what would his monthly mortgage payment be ?
3) how much more interest would Franklin pay if he took out a 30-year mortgage instead of a 15-year mortgage ?

Please show me details ......

Explanation / Answer

down payment= 20,000
remainign = 170,000
time - 30 years

interest = 5.6 percent

therefore
1. monthly interest = 5.6 /12= .466
let monthly payment be A

[A( 1 + .00466)ˆ(30x12)]/ (1 + (1.00466)ˆ30x12) = 170,000
= 976$ answer
similarly
2. instead of 30 put 15
we get monthly installment = 1398$

3. more interest =[ 976x360 - 1398x180]/ 1398x180 = 39.62% answer

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