Cheney is buying a house for $216,820. he made a down payment of $26,020 and will finance $190,800. he gets a 15 year fixed rate loan with a rate of 5.815%. how much interest will he pay over the life of his loan rounded to the nearest dollar? a- $95,593 b- $134,649 c- $69,573 d- $108,629

The value of the Financing loan is PV=$190,800.

The Rate per month is 5.815%. Therefore, the Monthly Interest Rate,r = 0.4846%

We will use the formula:

Where n=number of months in 15 years=12x15=180

and PMT=Payment every month, which is to be found.

Thus,

Thus

Thus, in 180 months Cheney pays: dollars.

Thus Total Interest paid = $286,391 - $190,800= $95,590

Thus Option A is the closest correct option.

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