Suppose you obtain a 30-year home mortgage in the amount of $204,000 with an APR of 4.75%, compounded monthly. Find the total amount of interest paid over the term of the mortgage.
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The formula for the monthly payment is: P = [r*PV] / [1 - (1 + r)^-n] where: P is the monthly payment r is the monthly interest rate (annual rate / 12) PV is the present value, or principal amount of the loan n is the number of payments (years * 12 for a monthly Show more…
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