if i buy a house for 34 thousand and the interest rate is 10% for 15 years, in total should it come out to be 85 thousand dollars? if not could you explain to me how much it should be thanx in advance
2006-12-11 11:53:26 · 16 answers · asked by redgrass43 1 in Science & Mathematics ➔ Mathematics
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2006-12-11 11:54:49 · answer #1 · answered by lori b 2 · 0⤊ 0⤋
No, it will be sooo much more expensive!
almost $85,000 would be your payment for just the first YEAR!
The interest rate could be:
$34,000 X 10% X 15 years = $34,000 X .1 X 15 = $51,000
If this is a yearly rate of 10%
If it is a quarterly rate (4 times per year) then it could be $204,000
BUT, it won't be so, because you will be paying off the loan each month. If you pay off $120/month and the interests is an APR then you would pay 1/12 of the APR each month on the interest of the loan. That would be 120 X 12 + the interest =
$1440 + 34000/12 + 33880/12 + 33760/12 + 33640/12 + 33520/12 + 33400/12 + 33280/12 + 33160/12 + 33040/12 + 32920/12 + 32800/12 + 32680/12 =
$1440 + 2833.33 + 2823.33 + 2813.33 + 2803.33 + 2793.33 + 27833.33 + 27773.33 + 2730.33 + 2753.33 + 2743.33 + 2733.33 + 2723.33 = $84,826.96 just for the first year!
Now you see why credit card companies are so rich.
Mortgage companies are a little better though and charge a much lower interest rate. It is also why for the first few years you will only be off the interest (10%) not the principle ($34,000).
I don't want to both figuring out the formula for you so I went to: http://www.moneychimp.com/calculator/compound_interest_calculator.htm
And let it do all the work for a combined payment of $201,584.18.
If the interest rate is only calculated once each year: $192,354.05
Some mortgage companies do it this way, and they charge a much higher monthly fee, which in the long run saves you a lot of money.
If you made a monthly payment of $500 then you could pay $360,395.40 for an APR or $351,724.82 for a yearly rate. Still you end up paying more than 10 times the original prices of the house!
2006-12-11 12:43:25 · answer #2 · answered by Dan S 7 · 0⤊ 0⤋
Using my financial calculator it says that for a 15 year loan on 34,000 paid monthly with an annual rate of interest of 10% the payments (interest + principal) would be $365.37
So over the course of 15 years you would pay a total of
365.37 * 12 * 15 = $65766.60
2006-12-11 12:03:16 · answer #3 · answered by rscanner 6 · 0⤊ 0⤋
yes, it would come out to be 85,000 dollars.....
Principal x Interest Rate = Interest per yr
34000 x .1 = 340
then
Interest per yr x Total of years = Total Interest
340 x 15yrs = 51000
then
Principal + Interest = Total
34000 + 51000 = 85,000
2006-12-11 12:02:32 · answer #4 · answered by ding87 2 · 0⤊ 0⤋
Yes, 10% of 34,000 is 3400, multiply by 15 and you get 51,000 plus 34,000 is 85,000
2006-12-11 11:56:38 · answer #5 · answered by Pace 5 · 0⤊ 0⤋
$85,000 is correct. $34,000 x 10% x 15 years = $85,000.
2006-12-11 11:58:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋
More like $60,000 (total P+I)
PS: some house, for 34K!
2006-12-11 11:56:50 · answer #7 · answered by Up your Maslow 4 · 0⤊ 0⤋
your question is incomplete - 10% interest is it simple interest or compound interest? I am pretty sure it will be compound but you gotta know how often it is compounded(per month, per week, or per year) ?
2006-12-11 11:56:28 · answer #8 · answered by way2mei 2 · 0⤊ 0⤋
Just put it on your Christmas list!
It's a lot easier!
2006-12-11 11:55:25 · answer #9 · answered by Daugz 2 · 0⤊ 0⤋
34,000*.10*15=51,000
2006-12-11 11:56:31 · answer #10 · answered by Anonymous · 0⤊ 0⤋