Consider a home mortgage of 250000 at a fixed apr for 45 for...

consider a home mortgage of $250,000 at a fixed APR for 4.5% for 25 years calculate the monthly payment determine the total amount paid over the term of the loan of the total amount paid what percentage is paid towards the principal and what percentage is paid for interest

Transcript

00:01 Hi, here it is given that the home mortgage of $250 ,000 at least cost of repay or of 4 .5 % for 25 years so that here we can say that the annual interest rate is which is equals to 4 .5 % which can be written as 4 .5 by 100 that is 0 .045 and also it is given that the principal amount which is equals to $250 ,000 and here we have to find the total months where the total here it is given that 25 years therefore it will be 25 years into 12 months by 1 year such that we will get 300 months where the monthly payment is given by the formula that is monthly payment equals to apr that is the rate of interest by 12 months into principal by 1 minus 1 plus the rate of interest by 12 months power minus of total months.

01:50 Here we can substitute the values to find the monthly payment so that we will get 0 .045 by 12 months into the principal is $250 ,000 whole divides 1 minus 1 plus 0 .045 by 12 the whole power minus 300 here by simplifying the numerator we will get 937 .5 and by simplifying the denominator we will get 0 .6747 then we will get the answer that 1389 .58 and we can say that the monthly payment is $1389 .58 and then we have to find the total amount paid over the term of the loan so that we have to multiply the monthly payment by the number of months that the loan was paid so that we will get the total amount paid over the term that is the total amount paid over the term equals to $1389 .58 into the number of months is 300 by simplifying this we will get $416 ,874 hence we can say that the total amount paid over the term of the loan is $416 ,874 and then we have to find the percentage is paid towards the principal and the interest here we found the total amount paid over the term and also we can find the total interest paid where the total interest paid equals to $416 ,874 minus $250 ,000 such that we will get $166 ,874 and then we have to find the percentage is paid towards the principal that is the percentage paid towards the principal equals to the total amount that is $250 ,000 that is the principal by the total amount that is $416 ,874 into 100 which gives 59 .97 percentage and the percentage paid towards the interest equals to $1 ,66 ,874 which is the total interest paid by $416 ,874 into 100 which gives the value 40 .03 percentage hence we can say that 59 .97 percentage is paid towards the principal and 40 .03 percentage is paid towards the interest...

Question

consider a home mortgage of $250,000 at a fixed APR for 4.5% for 25 years calculate the monthly payment determine the total amount paid over the term of the loan of the total amount paid what percentage is paid towards the principal and what percentage is paid for interest

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