Question

Laura and Martin obtain a 30-year, $1 10,000 conventional mortgage at 10.5% on a house seling for S15 a) Determine the total amount they will pay for their house. b) How much of the cost will be interest? c) How much of the first payment on the mortgage is applied to the principal? The r month 31, 65 mortgage payment including principal and inte est a) The total amount that Laura and Martin will pay for their house is s (Round to the nearest dollar as needed.) b) They will pay a total of $in interest. Round to the nearest dollar as needed.) c) Of the first mortgage payment, is applied to the principal. (Round to the nearest cent as needed.)

Answer 1

a)	Total amount paid by Laura and martin = $1,006.50 x 360 months = $362,340
b)	Total amount paid		$        362,340
	Less: Amount of mortgage		(110,000)
	Interest cost		$        252,340
c)	Amount of principal repaid in first mortgage payment
	Amount of mortgage	110000
	x rate per month	0.875%	(10.5%/12)
	Amount of principal repaid	$ 962.50