You are purchasing a house for $280,000. You can finance the house for 20 years

Question

You are purchasing a house for $280,000. You can finance the house for 20 years at 6.5% interest. (Assume a 20% down payment)You are purchasing a house for $280,000. You can finance the house for 20 years at 6.5% interest. (Assume a 20% down payment)You are purchasing a house for $280,000. You can finance the house for 20 years at 6.5% interest. (Assume a 20% down payment)

How much will your monthly payment be? (format answer as XXXX.XX)

What will the total finance charge be? (format answer as XXXXXX.XX)

Explanation / Answer

monthly payment be

=(280000*80%)/((1-(1+(6.5%/12))^(-20*12))/(6.5%/12))

=1670.0838

total finance charge be

=1670.0838*240-(280000*80%)

=176820.11

the above is the answer

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