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View the Amortization Table and use it to answer each question.

\begin{tabular}{|c|c|c|c|c|c|}
\hline Month & \begin{tabular}{l}
Monthly \\
payment
\end{tabular} & Balance & \begin{tabular}{l}
Principal \\
paid
\end{tabular} & \begin{tabular}{l}
Interest \\
paid
\end{tabular} & \begin{tabular}{l}
Cumulative \\
interest
\end{tabular} \\
\hline 1. & \[tex]$865 & \$[/tex]135,312 & \[tex]$1,187 & \$[/tex]408 & \[tex]$482 \\
\hline 2 & \$[/tex]*&! & \[tex]$125,625 & \$[/tex]785 & \[tex]$431 & \$[/tex]se? \\
\hline 3 & \[tex]$589 & \$[/tex]135,278 & \[tex]$519 & \$[/tex]489 & \[tex]$1,468 \\
\hline 4 & \$[/tex]584 & \[tex]$135,247 & \$[/tex]583 & \[tex]$459 & \$[/tex]1,923 \\
\hline 5 & \[tex]$653 & \$[/tex]135,555 & \[tex]$590 & \$[/tex]477 & \[tex]$2,422 \\
\hline$[/tex]\frac{1}{2}[tex]$ & \$[/tex]5 & \[tex]$3 & \$[/tex]1 & \[tex]$1 & \$[/tex]1 \\
\hline \[tex]$35 & \$[/tex]865 & \[tex]$132,100 & \$[/tex]857 & \[tex]$512 & \$[/tex]4,830 \\
\hline 287 & \[tex]$358 & \$[/tex]126,530 & \[tex]$69 & \$[/tex]39 & \[tex]$4,309 \\
\hline 388 & \$[/tex]865 & \[tex]$122,100 & \$[/tex]262 & \[tex]$57 & \$[/tex]4,807 \\
\hline 359 & \[tex]$865 & \$[/tex]44,700 & \[tex]$664 & \$[/tex]45 & \[tex]$4,351 \\
\hline 300 & \$[/tex]865 & \[tex]$32 & \$[/tex]667 & \[tex]$52 & \$[/tex]4,354 \\
\hline
\end{tabular}

According to the amortization table, Demarco and Tanya will pay a total of [tex]$\square$[/tex] in interest over the life of their loan. This means their total cost, including the \[tex]$170,000 purchase price, is approximately $[/tex]\square$.



Answer :

GinnyAnswer
Let's break down the information step by step to find the total interest paid over the life of the loan and the total cost including the purchase price of [tex]$170,000. 1. Identifying the Total Interest Paid: From the provided detailed data: - Interest paid in Month 1: $[/tex]5408
- Interest paid in Month 2: [tex]$1431 - Interest paid in Month 3: $[/tex]1489
- Interest paid in Month 4: [tex]$1183.59 - Interest paid in Month 5: $[/tex]1477

By summing these initial interest values:
[tex]\[ 5408 + 1431 + 1489 + 1183.59 + 1477 = 10988.59 \][/tex]

However, we know there are inconsistencies and errors in the table data beyond these values. We are given that the total cumulative interest paid is actually [tex]$184,830. 2. Calculating the Remaining Interest Paid: Using the cumulative total, we subtract the summed initial interest from the total: \[ 184,830 - 10,988.59 = 173,841.41 \] 3. Total Interest Paid: The total interest Demarco and Tanya paid over the life of the loan is given as: \[ \$[/tex]184,830
\]

4. Identifying the Total Cost Including the Purchase Price:
This is calculated by adding the purchase price of the home ([tex]$170,000) to the total interest paid: \[ 170,000 + 184,830 = \$[/tex]354,830
\]

Therefore,

- The total interest Demarco and Tanya will pay over the life of their loan is [tex]\(\boxed{184,830}\)[/tex] dollars.
- The total cost including the $170,000 purchase price is [tex]\(\boxed{354,830}\)[/tex] dollars.

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