The monthly payment formula is:
[tex]M=A\frac{r(r+1)^n}{(1+r)^n-1}[/tex]To find the total amount of the loan we solve this equation for A, then we have:
[tex]A=M\frac{(1+r)^n-1}{r(r+1)^n}[/tex]Now in this formula r is the monthly interest rate, n is the number of payments and M is the monthly mortage, then we have:
[tex]\begin{gathered} A=(1050)\frac{(1+\frac{0.045}{12})^{360}-1}{(\frac{0.045}{12})(\frac{0.045}{12}+1)^{360}} \\ A=207229.22 \end{gathered}[/tex]Therefore you can get a loan of $207,229.22
You will pay the bank a total of $378,000.
The total interest would be $170770.78
