You borrow $165,000 to buy a house. The mortgage rate is 7.5 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you pay?
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The formula for calculating the monthly payment on a mortgage is: M = P[r(1+r)^n]/[(1+r)^n – 1] where: M is your monthly payment. P is the principal loan amount. r is your monthly interest rate. The lender's annual interest rate divided by 12. n is your number Show more…
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