Answer:
Explanation:
To calculate how much Gloria will pay over 30 years for her $70,000 mortgage at 7.5%, we need to use the formula for a standard mortgage payment, which is:
P = L[c(1 + c)^n]/[(1 + c)^n - 1]
Where:
P = the monthly payment
L = the loan amount
c = the monthly interest rate (annual interest rate divided by 12)
n = the total number of payments (30 years multiplied by 12 months per year)
First, we need to calculate the monthly interest rate:
c = 7.5% / 12 = 0.00625
Next, we need to calculate the total number of payments:
n = 30 years x 12 months per year = 360
Now we can plug in these values to the formula:
P = 70000[0.00625(1 + 0.00625)^360]/[(1 + 0.00625)^360 - 1]
P = $493.95
Therefore, Gloria will pay $493.95 per month for 30 years for her $70,000 mortgage at 7.5%. Over the course of the 30 years, she will pay a total of:
Total Payments = P x n = $493.95 x 360 = $177,822
So, Gloria will pay a total of $177,822 over 30 years for her $70,000 mortgage at 7.5%.