Math Problem Statement
You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 6% interest.
a) How big of a loan can you afford?
b) How much total money will you pay the loan company?
c) How much of that money is interest?
Solution
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Math Problem Analysis
Mathematical Concepts
Amortization
Interest Calculation
Loan Payments
Formulas
Monthly Mortgage Payment Formula: M = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Total Payment Calculation: Total Paid = M × n
Interest Calculation: Interest Paid = Total Paid - Principal (P)
Theorems
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Suitable Grade Level
Grades 10-12
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