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A family is purchasing a house and needs to finance a 195,000 mortgage from the bank with an annual percentage rate (APR) of 5.3%. The family is financing it over 30 years and making monthly payments. What is the total amount the family will pay back to the bank (to the nearest dollar)?
$195,000
$328,322
$389,822
$447,210

Respuesta :

musiclover10045

Calculate the monthly payment:

195,000 x ( (0.05/12)x1+0.053)^12)/(1+0.053)^12-1)

Monthly payment = 1,082.84

Multiply monthly payment by 12 to get one year: 1082.84x 12 = 12994.08

Now multiply by 30 years:

12994.08 x 30 = 389822.40

The answer is $389,822

ashishdwivedilVT

The total amount the family will pay back to the bank is $389822.

it is given that:

loan amount (P)= $195000

Annual percentage rate(R)= 5.3%

time for which loan is being taken (N)= 30years

we need to calculate equated monthly installment or EMI in order to calculate the total amount that the family will pay back to the bank after 30 years.

what is the formula to calculate EMI?

formula to calculate monthly EMI is:

[tex]EMI= P*I*\frac{(1+I)^N}{(1+I)^N-1}[/tex]

where I = APR/12

EMI = [tex]195000*5.3/12*\frac{(1+5.3/12)^30}{(1+5.3/12)^30-1}[/tex]

EMI = $1082.84

Total amount to be paid in 30 years = 1082.84*12*30 =$389822.4

therefore, the total amount the family will pay back to the bank is $389822

to get more about EMI related problems refer to the link,

https://brainly.com/question/26496859

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