Respuesta :
Simple interest calculated only on the principal amount. The total amount paid by manager is $440,000.
What is simple interest?
Simple interest is the amount charged on the principal amount with a fixed rate of interest for a time period. Simple interest calculated only on the principal amount.
Given information-
The price of the property is $1.5 m.
The total case amount manager has $200,000.
The annual interest rate on the loan is 2.45%.
The loan is for 25 years.
As the total case amount manager has $200,000.Thus total loan amount is,
[tex]P=1500000-200000\\P=1300000[/tex]
Monthly interest rate is,
[tex]r=\dfrac{2.45\times1000}{12} \\r=204.17[/tex]
Therefore down payment is,
[tex]d=\dfrac{1300000}{224.17} \\d=5800[/tex]
Total interest paid by her is,
[tex]I=5800\times25\times12-1300000\\I=440000[/tex]
Thus the total amount paid by manager is $440,000.
Learn more about the simple interest here;
https://brainly.com/question/2294792
Answer: 439, 800 is the correct answer
Step-by-step explanation:
$439800$
We note that the manager requires a mortgage of $1,500,000−$200,000=$1,300,000. We must apply the formula for P0 and solve for d, that is,
P0=d(1−(1+rk)−Nk)(rk).
We have P0=$1,300,000,r=0.0245,k=12,N=25, so substituting in the numbers into the formula gives
$1,300,000=d(1−(1+0.024512)−25⋅12)(0.024512),
that is,
$1,300,000=224.163565d⟹d=$5,799.34.
So the total interest payable is
I=$5,799.34×25×12−$1,300,000=$439,802
which is $439,800 to the nearest $100.
