Laura and Martin obtain a 25-year, $120,000 conventional mortgage at 10.5% on a house selling for $160,000. Their monthly mortgage payment, including principal and interest, is $1132.80. 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?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
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Laura and Martin obtain a 25-year, $120,000 conventional mortgage at 10.5% on a house selling for $160,000. Their monthly mortgage payment, including principal and interest, is $1132.80.
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?
a) The total amount that Laura and Martin will pay for their house is $
(Round to the nearest dollar as needed.)
Transcribed Image Text:Laura and Martin obtain a 25-year, $120,000 conventional mortgage at 10.5% on a house selling for $160,000. Their monthly mortgage payment, including principal and interest, is $1132.80. 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? a) The total amount that Laura and Martin will pay for their house is $ (Round to the nearest dollar as needed.)
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