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Math Help - Total Interest on loan.

  1. #1
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    Total Interest on loan.

    Hi I have a math class with a horrible teacher from some country and I can't understand a word she says. Thus, I have a problem with my math homework. By the way it's not the terminology I can't understand it's the crazy accent. Anyway, The problem I have is that I need to figure out the monthly payments I need to make which I believe I already have. Then I need to figure out the total amount of interest I need to pay. Heres the info I got.

    Principal Loan = $135,000
    APR = 5.9%
    Years = 30

    I believe the monthly payment is at $800.73, but I'm not complete positive on that either. Any help would be appreciated.
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  2. #2
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    Is it simple interest or compounding?
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  3. #3
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    Calculate the monthly payment and the total amount paid in interest for a home mortgage of $135,000 with a fixed APR of 5.9% for 30 years.


    That's the problem so my guess is regular interest.
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  4. #4
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    A mortgage would suggest it is compounded.

    Consider A = P\left( 1+\frac{R}{100}\right)^t = 135,000\left( 1+\frac{5.9}{100}\right)^{30}

    divide this by the number of repayments 30 \times 12
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  5. #5
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    So then the answer is 381.69? That doesn't seem right.
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  6. #6
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    Are you given any other information?

    Is it compounded continuously maybe?
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