You can afford a $1050 per month mortgage payment. you've found a 30 year loan at 8% interest.

a) how big of a loan can you afford?

b) how much total money will you pay the loan company?

c) how much of that money is interest?

loan can you afford = $143097.67

total money will you pay the loan company = $378000

interest amount  = $234902.33

Explanation:

given data

principal = $1050 per month

time = 30 year = 30 × 12 = 360 months

interest rate = 8%  = = 0.006667 monthly

solution

we get here first maximum amount of loan by present value of annuity as

present value of annuity = principal ×  .........1

put here value we get

present value of annuity = 1050 ×

present value of annuity = $143097.67

and

now we get total amount of money pay will be as

total amount of money pay = principal × time period

total amount of money pay = $1050 × 360

total amount of money pay = $378000

and

total amount of interest paid will be

interest amount = total amount paid - loan amount

interest amount  = $378000 - $143097.67

interest amount  = $234902.33

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer; work samples;