Brant has a 40-year fixed rate mortgage for 345,500 with monthly payments of 878.85. The annual interest rate is 3%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?
Principal amount = $345,500 Monthly payment = $878.85 Period of payment = 40 years Interest rate = 3%
Since monthly payment is given, the first part question asks the total amount to be paid after 40 years. That is; Total cost of principal amount = monthly payment*40*12 = 878.85*40*12 = $421,848
Total interest paid = Total amount paid - Principal amount = $421,848 - $345,500 = $76,348
