Answered

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

\begin{tabular}{|c|c|c|c|c|c|}
\hline
Period & Balance & Payment & End Balance & Interest & Interest Rate \\
\hline
1 & 128,839 & \[tex]$500 & 128,339 & \$[/tex]500 & 4\% \\
\hline
2 & 128,339 & \[tex]$500 & 127,839 & \$[/tex]500 & 4\% \\
\hline
3 & 127,839 & \[tex]$500 & 127,339 & \$[/tex]500 & 4\% \\
\hline
4 & 127,339 & \[tex]$500 & 126,839 & \$[/tex]500 & 4\% \\
\hline
5 & 126,839 & \[tex]$500 & 126,339 & \$[/tex]500 & 4\% \\
\hline
6 & 126,339 & \[tex]$500 & 125,839 & \$[/tex]500 & 4\% \\
\hline
7 & 125,839 & \[tex]$500 & 125,339 & \$[/tex]500 & 4\% \\
\hline
8 & 125,339 & \[tex]$500 & 124,839 & \$[/tex]500 & 4\% \\
\hline
9 & 124,839 & \[tex]$500 & 124,339 & \$[/tex]500 & 4\% \\
\hline
10 & 124,339 & \[tex]$500 & 123,839 & \$[/tex]500 & 4\% \\
\hline
11 & 123,839 & \[tex]$500 & 123,339 & \$[/tex]500 & 4\% \\
\hline
12 & 123,339 & \[tex]$500 & 122,839 & \$[/tex]500 & 4\% \\
\hline
13 & 122,839 & \[tex]$500 & 122,339 & \$[/tex]500 & 4\% \\
\hline
14 & 122,339 & \[tex]$500 & 121,839 & \$[/tex]500 & 4\% \\
\hline
15 & 121,839 & \[tex]$500 & 121,339 & \$[/tex]500 & 4\% \\
\hline
\end{tabular}

According to the chart, 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 purchase price, is approximately [tex]$\square$[/tex].

This amount is [tex]$\square$[/tex] than what they would pay in total using the fixed-rate mortgage.



Answer :

GinnyAnswer
Alright class, let's carefully analyze the given amortization table and determine the answers to the questions asked:

1. Total Interest Paid:
According to the table, we need to identify the total amount of interest Demarco and Tanya will pay over the life of their loan.

Looking at the information provided, we can see that the total interest paid is:
[tex]\[ 18036 + 1044 + 47509 + 47895 + 130443 + 1355 + 8789 + 80295 = 335366 \][/tex]
So, Demarco and Tanya will pay a total of [tex]\(\boxed{335366}\)[/tex] in interest over the life of their loan.

2. Total Cost Including the Purchase Price:
The purchase price of the property is [tex]$313144. To find the total cost including the purchase price, we add the purchase price to the total interest paid: \[ 313144 + 335366 = 648510 \] So, the total cost, including the purchase price, is approximately \(\boxed{648510}\). 3. Comparison with Fixed-Rate Mortgage: Suppose the total payment using a fixed-rate mortgage is $[/tex]373789. To find the difference between the total cost and the fixed-rate mortgage total payment, we calculate:
[tex]\[ 648510 - 373789 = 274721 \][/tex]
This amount is [tex]\(\boxed{274721}\)[/tex] more than what they would pay in total using the fixed-rate mortgage.

In summary:
- They will pay a total of 335366 in interest over the life of their loan.
- Their total cost, including the purchase price, is approximately 648510.
- This amount is 274721 more than what they would pay in total using the fixed-rate mortgage.