Answer:
Selling price = $190003.206 and total interest paid is $135640.794
Step-by-step explanation:
The down payment of house = $25404
Monthly payment = $834 per month.
Total number of years = 30 years = 30*12 = 360 months.
Interest rate compounded monthly = 4.5 % * 1/12 = 0.375% per month or 0.00375.
Now we have to calculate the selling price of house and total interest paid.
Loan amount = Present value of monthly payments.
[tex]\text{Loan amount} = \frac{ Monthly \ payment \times [1- (1+r)^{-n}]}{r} \\= \frac{ 834 \times [1- (1+ 0.00375)^{-360}]}{0.00375} \\= 164599.206[/tex]
Selling price of house = 25404 + 164599.206 = 190003.206
Interest amount = total amount of installment – loan amount
Interest amount = 834*360 – 164599.206 = 135640.794 dollars.
