Answer:
total interest paid I =$ 552,455.77
monthly payment = A/ nt =$2,027.18
Explanation:
compound interest formula is given by
A = P (1 + (r/n))^(nt)
where
A = ? (final amount)
P = $55,700
r = 9.6%
t = (1/12)monthly.
n = 25 year payment plan.
A = $55,700 (1 + (9.6/12))^(25*12)
total amount A = $608,155.77
total interest paid I =$ 552,455.77
initial principal P =$ 55,700
monthly payment = A/ nt = $608,155.77 / 300
=$2,027.18
