Answer:
139,600.96
Step-by-step explanation:
We use the payment of a loan formula:
[tex] \displaystyle PMT = \frac{P \left(\displaystyle \frac{r}{n}\right)}{\left[ 1 - \left( 1 + \displaystyle \frac{r}{n}\right)^{-nt} \right]} [/tex]
P is the principal: $200,000. t is the number of years: 30, n is 12 since it is compounded monthly. And r is 0.039 which is 3.9% in decimal form (3.9/100)
So the formula becomes:
[tex] \displaystyle PMT = \frac{200000 \left(\displaystyle \frac{0.039}{12}\right)}{\left[ 1 - \left( 1 + \displaystyle \frac{0.039}{12}\right)^{-12(30)} \right]} [/tex]
And using our calculator we get: PMT = $943.336
Then the total amount of money paid in the mortgage is:
PMT*n*t = $943.336(12)(30) = $339,600.96
Therefore, the interest paid is:
$339,600.96 - $200,000 = $139,600.96
You have to enter it without $ and rounded to the nearest cent so: 139,600.96
