Answer:
[tex]\large\boxed{\large\boxed{\$ 251,618.40}}[/tex]
Explanation:
The formula to calculate the monthly payments for a fixed interest mortgage is:
[tex]Payment=L\times \frac{i(1+i)^n}{(1+i)^n-1}[/tex]
Where:
- Payment is the monthly payment
- L is the amount of the loan: $150,000
- i is the monthly interest rate: 3.8%/12 = 0.038/12
- n is the number of months: 30×12 = 360
Substituting:
[tex]Payment=\$ 150,000\times \frac{(0.038/12)(1+0.038/12)^{360}}{(1+0.038/12)^{360}-1}[/tex]
[tex]Payment=\$ 698.94[/tex]
Now multiply the monthly payments by the number of payments:
- Total payment = $698.94 × 360 = $251,618.40
