Question #291466

Mae purchased a home for ₱4,570,000 and obtained a 20-year loan with an annual interest rate of 8.5%, after paying a down payment of 25%. Find the the amount of interest paid on the loan over the 20 years

1
Expert's answer
2022-02-01T17:00:58-0500

P =A(rn)1  (1 + rn)ntP\ =\frac{A\left(\frac{r}{n}\right)}{{1\ -\ \left(1\ +\ \frac{r}{n}\right)}^{-nt}}


where A = 25100 × 4,570,000 = 1,142,500where\ A\ =\ \frac{25}{100}\ \times\ 4,570,000\ =\ 1,142,500


where r = 8.5100 = 0.085where\ r\ =\ \frac{8.5}{100}\ =\ 0.085


t = 20yearst\ =\ 20years


n = 12 monthsn\ =\ 12\ months


P =1,142,500(0.08512)1  (1 + 0.08512)12×20P\ =\frac{1,142,500\left(\frac{0.085}{12}\right)}{{1\ -\ \left(1\ +\ \frac{0.085}{12}\right)}^{-12\times20}}


P =8,092.7081  (0.1838)P\ =\frac{8,092.708}{1\ -\ \left(0.1838\right)}


P = 9,915.10P\ =\ 9,915.10


The amount of interest paid on the loan over 20years will be  ₱9,915.10The\ amount\ of\ interest\ paid\ on\ the\ loan\ over\ 20years\ will\ be\ \ ₱9,915.10


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!
LATEST TUTORIALS
APPROVED BY CLIENTS