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24 June, 21:33

Danielle bought a house for $215,000. She financed $189,375 of the purchase price with a 15-year-fixed-rate mortgage with a 6.1% interest rate. What is the total cost of the principal and interest after 15 years?

A. $335,317.05

B. $290,419.20

C. $329,716.80

D. $295,351.95

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  1. 24 June, 21:43
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    Total cost of the house = $215,000

    Amount financed through mortgage = $189,375

    Amount paid through other means (such as cash) = 215,000-189,375 = $25,625

    Rate = 6.1% = 0.061

    Number of years = 15 years

    Monthly payment, M = P[i (1+i/12) ^12*15]/[ (1+i/12) ^12*15 - 1] = 189,375[0.061/12 (1+0.061/12) ^12*15]/[ (1+0.061/12) ^12*15 - 1] = $1,608.30

    Total amount paid = $25,625 + (M*12*15) = $25,625 + $289,494.56 = $315,119.56

    Seems the options given don't match the correct answer.
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