Answer:
you can afford a loan of $211,204 with a total payment of $504,000 (which is $292,796 interest in total).
Step-by-step explanation:
Deposit, p = $1400
Rate of interest, r = 0.07 ÷ number of months in a year (12) = 0.0058
periods, n = 30 X 12 = 360
P = 1400 ( 1 - ( 1 + 0.0058)^- 360) ÷ 0.0058
= 1400 (150.86)
p = $211,204
You will pay a total of $504,000 ($1400 per month for 360 months) to the loan company.
The amount you pay - the amount of the loan is the interest paid. In this case, you’re paying $504,000 - $211,204 = $292,796 interest paid in total.
