Question
Asked Nov 29, 2019
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WHAT WOULD BE THE TOTAL INTEREST PAID ON  THE LIFE OF A 30 YEAR FIXED MORTGAGE WITH 20% DOWN AT A 3.72% INTEREST RATE. THE HOME ORIGINAL PRICE  IS 70000

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Expert Answer

Step 1

Calculate the total interest paid as follows:

А
В
C
D
Е
F
1 Year Opening balance Annual payment
$3,129.30
Principal Remaining balance
Interest
$2,083.20 S1,046.10
$2,044.29 $1,085.01
$2,003.92 $1,125.37
S1,962.06 $1,167.24
$1,918.64 $1,210.66
$1,873.60 $1,255.69
$1,826.89 $1,302.41
$1,778.44 $1,350.86
$1,728.19 $1,401.11
S1,676.07 $1,453.23
$1,622.01 $1,507.29
S1,565.94 $1,563.36
$1,507.78 $1,621.52
S1,447.46 $1,681.84
1
$56,000.00
$54,953.90
2
$54,953.90
$53,868.89
2
$3,129.30
$53,868.89
$3,129.30
$52,743.52
4
$52,743.52
$3,129.30
$51,576.29
$50,365.63
5
$3,129.30
$3,129.30
$51,576.29
6
$49,109.93
6
$50,365.63
7
$49,109.93
7
$3,129.30
$47,807.53
$47,807.53
$46,456.67
S3,129.30
$46,456.67
$45,055.56
$3,129.30
10
$45,055.56
10
$3,129.30
$43,602.34
11
$3,129.30
$3,129.30
11
$43,602.34
$42,095.05
12
12
$42,095.05
$40,531.69
13
$38,910.17
13
$40,531.69
$3,129.30
14
14
$38,910.17
S3,129.30
S37,228.33
15
co
co
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Image Transcriptionclose

А В C D Е F 1 Year Opening balance Annual payment $3,129.30 Principal Remaining balance Interest $2,083.20 S1,046.10 $2,044.29 $1,085.01 $2,003.92 $1,125.37 S1,962.06 $1,167.24 $1,918.64 $1,210.66 $1,873.60 $1,255.69 $1,826.89 $1,302.41 $1,778.44 $1,350.86 $1,728.19 $1,401.11 S1,676.07 $1,453.23 $1,622.01 $1,507.29 S1,565.94 $1,563.36 $1,507.78 $1,621.52 S1,447.46 $1,681.84 1 $56,000.00 $54,953.90 2 $54,953.90 $53,868.89 2 $3,129.30 $53,868.89 $3,129.30 $52,743.52 4 $52,743.52 $3,129.30 $51,576.29 $50,365.63 5 $3,129.30 $3,129.30 $51,576.29 6 $49,109.93 6 $50,365.63 7 $49,109.93 7 $3,129.30 $47,807.53 $47,807.53 $46,456.67 S3,129.30 $46,456.67 $45,055.56 $3,129.30 10 $45,055.56 10 $3,129.30 $43,602.34 11 $3,129.30 $3,129.30 11 $43,602.34 $42,095.05 12 12 $42,095.05 $40,531.69 13 $38,910.17 13 $40,531.69 $3,129.30 14 14 $38,910.17 S3,129.30 S37,228.33 15 co co

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Step 2

(Cont...)

A.
B
C.
D
F
$1,320.00 $1,809.29
$1,252.70 S1,876.60
$1,182.89 $1,946.41
S1,110.48 $2,018.81
$1,035.38 $2,093.91
$957.49 $2,171.81
$876.70 $2,252.60
$792.90 $2,336.40
$705.99 $2,423.31
$615.84 $2,513.46
$522.34 $2,606.96
$425.36 $2,703.94
$324.77 $2,804.52
$220.44 $2,908.85
$112.23 $3,017.06
$37,878.S6
$35,483.93
16
$3,129.30
$3,129.30
S33,674.64
17
17
$33,674.64
S31,798.04
18
S3,129.30
$3,129.30
$3,129.30
$3,129.30
$29,851.63
18
$31,798.04
$29,851.63
19
19
$27,832.82
20
20
$27,832.82
S25,738.90
21
21
$25,738.90
$23,567.09
22
22
$23,567.09
$3,129.30
$21,314.49
$18,978.10
23
23
$21,314.49
$3,129.30
24
$18,978.10
$3,129.30
$3,129.30
$3,129.30
$3,129.30
24
$16,554.79
25
$14,041.33
$11,434.37
25
$16,554.79
26
26
$14,041.33
27
27
$11,434.37
S8,730.44
28
$5,925.91
28
S8,730.44
$3,129.30
29
$3,129.30
29
$5,925.91
$3,017.06
30
($0.00)
30
S3,017.06
$3,129.30
31
Total Interest
32
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A. B C. D F $1,320.00 $1,809.29 $1,252.70 S1,876.60 $1,182.89 $1,946.41 S1,110.48 $2,018.81 $1,035.38 $2,093.91 $957.49 $2,171.81 $876.70 $2,252.60 $792.90 $2,336.40 $705.99 $2,423.31 $615.84 $2,513.46 $522.34 $2,606.96 $425.36 $2,703.94 $324.77 $2,804.52 $220.44 $2,908.85 $112.23 $3,017.06 $37,878.S6 $35,483.93 16 $3,129.30 $3,129.30 S33,674.64 17 17 $33,674.64 S31,798.04 18 S3,129.30 $3,129.30 $3,129.30 $3,129.30 $29,851.63 18 $31,798.04 $29,851.63 19 19 $27,832.82 20 20 $27,832.82 S25,738.90 21 21 $25,738.90 $23,567.09 22 22 $23,567.09 $3,129.30 $21,314.49 $18,978.10 23 23 $21,314.49 $3,129.30 24 $18,978.10 $3,129.30 $3,129.30 $3,129.30 $3,129.30 24 $16,554.79 25 $14,041.33 $11,434.37 25 $16,554.79 26 26 $14,041.33 27 27 $11,434.37 S8,730.44 28 $5,925.91 28 S8,730.44 $3,129.30 29 $3,129.30 29 $5,925.91 $3,017.06 30 ($0.00) 30 S3,017.06 $3,129.30 31 Total Interest 32

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Step 3

Workings...

А
C
D
E
Principal Remaining balance
=B2-E2
1Year Opening balance
Annual payment
Interest
=70000*(1-20%) PMT(3.72%,30.-56000) B2*3.72%
=F2
=F3
=F4
-F5
=F6
=F7
=F8
2 1
-C2-D2
ЕС3-D3
-PMT(3.72%30.-56000) B3*3.72%
=PMT(3.72%,30,-56000)B4*3.72%
PMT(3.72%30.-56000) B5*3.72%
-PMT(3.72%30.-56000) B6*3.72%
=PMT(3.72%,30,-56000)B7*3.72%
-PMT(3.72%,30,-56000) B8*3.72%
-PMT(3.72%30.-56000) B9*3.72%
=PMT(3.72%,30,-56000) B10*3.72%
-PMT(3.72%,30.-56000)B11*3.72%
-PMT(3.72%30.-56000) B12*3.72%
=PMT(3.72%,30,-56000)B13*3.72%
-PMT(3.72%,30,-56000)B14*3.72%
-PMT(3.72%30.-56000) B15*3.72%
-PMT(3.72%30.-56000) B16*3.72%
ЕВ3-ЕЗ
-B4-E4
3 2
- C4-D4
-C5-D5
4 3
=B5-E5
5 4
-C6-D6
=B6-E6
6 5
-C7-D7
=B7-E7
-B8- E8
7 6
-C8-D8
-C9-D9
8 7
=B9-E9
-C10-D10 B10-E10
-C11-D11-B11-E11
-C12-D12 B12-E12
-C13-D13-B13-E13
-C14-D14|B 14-E14
-C15-D15-B15-E15
-C16-D16 -B16-E16
9 8
-F9
=F10
=F11
=F12
=F13
=F14
=F15
10 9
11 10
12 11
13 12
14 13
15 14
16 15
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А C D E Principal Remaining balance =B2-E2 1Year Opening balance Annual payment Interest =70000*(1-20%) PMT(3.72%,30.-56000) B2*3.72% =F2 =F3 =F4 -F5 =F6 =F7 =F8 2 1 -C2-D2 ЕС3-D3 -PMT(3.72%30.-56000) B3*3.72% =PMT(3.72%,30,-56000)B4*3.72% PMT(3.72%30.-56000) B5*3.72% -PMT(3.72%30.-56000) B6*3.72% =PMT(3.72%,30,-56000)B7*3.72% -PMT(3.72%,30,-56000) B8*3.72% -PMT(3.72%30.-56000) B9*3.72% =PMT(3.72%,30,-56000) B10*3.72% -PMT(3.72%,30.-56000)B11*3.72% -PMT(3.72%30.-56000) B12*3.72% =PMT(3.72%,30,-56000)B13*3.72% -PMT(3.72%,30,-56000)B14*3.72% -PMT(3.72%30.-56000) B15*3.72% -PMT(3.72%30.-56000) B16*3.72% ЕВ3-ЕЗ -B4-E4 3 2 - C4-D4 -C5-D5 4 3 =B5-E5 5 4 -C6-D6 =B6-E6 6 5 -C7-D7 =B7-E7 -B8- E8 7 6 -C8-D8 -C9-D9 8 7 =B9-E9 -C10-D10 B10-E10 -C11-D11-B11-E11 -C12-D12 B12-E12 -C13-D13-B13-E13 -C14-D14|B 14-E14 -C15-D15-B15-E15 -C16-D16 -B16-E16 9 8 -F9 =F10 =F11 =F12 =F13 =F14 =F15 10 9 11 10 12 11 13 12 14 13 15 14 16 15

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