The Murphys bought a $371,000 townhome. They made a down payment of $44,000 and took out a mortgage for the rest. Over the course of 15 years they made monthly payments of $2759.42 on their mortgage until it was paid off.(a) What was the total amount they ended up paying for the townhome (including the down payment and monthly payments)?$(b) How much interest did they pay on the mortgage?
Question
The Murphys bought a 44,000 and took out a mortgage for the rest. Over the course of 15 years they made monthly payments of (b) How much interest did they pay on the mortgage?
Solution
(a) To find the total amount the Murphys ended up paying for the townhome, we need to add the down payment to the total amount paid over the course of the mortgage.
The total amount paid over the course of the mortgage can be found by multiplying the monthly payment by the number of months in 15 years (15 years * 12 months/year = 180 months).
So, the total amount paid on the mortgage is 496,694.60.
Adding the down payment of 496,694.60 + 540,694.60.
(b) To find the amount of interest paid on the mortgage, we subtract the original mortgage amount from the total amount paid on the mortgage.
The original mortgage amount is the cost of the townhome minus the down payment: 44,000 = $327,000.
So, the amount of interest paid is 327,000 (original mortgage amount) = $169,694.60.
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