Kerri takes out a mortgage for $55,000 at 9% for 25 years.
Therefore, from the data given on the monthly payments for mortgages, her monthly payment is
[tex]\text{ \$461.56}[/tex]
The total payment will be
[tex]Total\text{ payment=Monthly payment }\times12\times Number\text{ of years}[/tex]
Therefore,
[tex]Total\text{ payment=461.56}\times12\times25=\text{ \$138468}[/tex]
Hence, the total amount paid is
[tex]\text{ \$138,468}[/tex]
The cost of the mortgage will be;
[tex]Cost\text{ of mortgage=Total amount - Principal amount}[/tex]
Therefore,
[tex]Cost\text{ of mortgage=\$138,468-\$55,000=\$83468}[/tex]
Hence, the cost of the mortgage is
[tex]\text{ \$}83,468[/tex]
Final answers
Monthly payment
[tex]\operatorname{\$}\text{461.56}[/tex]
The total amount paid
[tex]\operatorname{\$}\text{138,468}[/tex]
The cost of the mortgage
[tex]\operatorname{\$}83,468[/tex]
