I am lost with this question. Is there a specific formula I should be using? Que

Question

I am lost with this question. Is there a specific formula I should be using?

Question 1

Suppose that 10 years ago you bought a home for $120,000, paying 10% as a down payment, and financing the rest at 9% interest for 30 years.

Your existing mortgage (the one you got 10 years ago)

How much money did you pay as your down payment?

$   

Question 2.
How much money was your existing mortgage (loan) for?

$   

Question 3.

What is your current monthly payment on your existing mortgage?

$    

Note: Carry at least 4 decimal places during calculations, but round your final answer to the nearest cent.

Question 4.

How much total interest will you pay over the life of the existing loan?

$   

Explanation / Answer

price of home = $ 120,000

you paid 10% downpayment

a) down payment = .10 ( 120,000) = $ 12000

b) existing mortgage = 120,000 - 12000 = $ 108,000

c) applying mortgage formula

P = 108000 [ .09/12 ( 1+ .09/12)^30*12 / ( 1+ .09/12)^30*12 -1 ]

P = 108000 [ .09/12 ( 14.7305 / 13.7305 )

= 868.99

so monthly payment = $ 869

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