a 6.725% interest rate. How much are his monthly payments?

Karen is financing a $285,000 mortgage for 30 years at a fixed rate of 7.15%. What is the total cost of the principal and interest after 30 years?

Archie is financing a condominium for $423,000. He gets a 30-year, fixed rate mortgage with a rate of 5.375%. How much interest will he pay over the life of his loan? Round to the nearest dollar.

Mercedes is debating between two different mortgages for $142,000. She found a 20-year fixed rate loan at 7.45% and 15-year fixed rate loan at the same rate. How much more interest will she pay for the 20-year loan versus the 15-year loan?

### 2 Answers

If you learn how to calculate the monthly payment — by financial calculator or Excel — the rest is pretty straight-forward. For Excel, use =PMT() formula and it will help you fill in the variables.

1. 1,067

2. 692,968. 1924.91 per month X 360 months

3. 429,725. (2,368.68 X 360) – 423,000

4. 37,285 Option 1 is 1,139.60 X 240 = 273,504 total payments; Option 2 is ,1,312.33 X 180 = 236,219. Since the principal payment is the same under both options, the difference is interest.

I’m not completely sure about this