Problem PageQuestionThe Lees bought a $367,000 house. They made a down payment of $49,000 and took out a mortgage for the rest. Over the course of 30 years they made monthly payments of $1906.58 on their mortgage until it was paid off.(a) What was the total amount they ended up paying for the house (including the down payment and monthly payments)?$(b) How much interest did they pay on the mortgage?$

(a) To find the total amount they ended up paying for the house, 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 30 years.

There are 12 months in a year, so 30 years is 30 * 12 = 360 months.

So, the total amount paid over the course of the mortgage is $1906.58 * 360 =$686,368.80.

Adding the down payment of $49,000 gives a total cost of$686,368.80 + $49,000 =$735,368.80.

(b) To find the amount of interest paid on the mortgage, we subtract the original amount of the mortgage from the total amount paid over the course of the mortgage.

The original amount of the mortgage can be found by subtracting the down payment from the cost of the house, which gives $367,000 -$49,000 = $318,000.

So, the amount of interest paid on the mortgage is $686,368.80 -$318,000 = $368,368.80.

(a) To find the total amount they ended up paying for the house, 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 30 years.

There are 12 months in a year, so 30 years is 30 * 12 = 360 months.

So, the total amount paid over the course of the mortgage is $1906.58 * 360 =$686,368.80.

Adding the down payment of $49,000 gives a total of$686,368.80 + $49,000 =$735,368.80.

So, they ended up paying a total of $735,368.80 for the house.

(b) To find the amount of interest they paid on the mortgage, we need to subtract the original amount of the mortgage from the total amount paid over the course of the mortgage.

The original amount of the mortgage can be found by subtracting the down payment from the purchase price of the house.

So, the original amount of the mortgage is $367,000 -$49,000 = $318,000.

Subtracting this from the total amount paid over the course of the mortgage gives the amount of interest paid: $686,368.80 -$318,000 = $368,368.80.

So, they paid $368,368.80 in interest on the mortgage.