Calculate the total interest paid on a 30-year, 3.9% fixed-rate $200,000 mortgage loan.

Remember that number of compounding periods in a year n = number of payments expected to be made in a year. If you make monthly mortgage payments, then interest on the loan is compounded monthly.

Total Interest payment on Monthly compounding is $443,177

Explanation:

Mortgage Interest payment will involve the compounding effect of interest amount.

Use following Formula

A = P ( 1 + r )^n

r = rate of interest = 3.9% = 3.9% / 12 = 0.325%

n =  Number of periods = 30 years x 12 month each year = 360 periods

P = Principal amount = $200,000

A = $200,000 x ( 1 + 0.00325 )^360 = $643,177.17

Interest amount = $643,177.17 - $200,000 = $443,177.17

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi