Answer:
total amount interest and principal is $263333.4
Step-by-step explanation:
given data
amount = $189000
rate = 6.25 % = 0.0625/12 = 0.005208
time 20 = 20 × 12 = 240
time = 7 = 7 × 12 = 84
to find out
principal and interest
solution
we find here for 20 year and then 7 year
so amount = principal ( 1- rate)^-t / rate
189000 = principal ( 1- 0.005208)^-240 / 0.005208
principal = 1381.45
and
for 7 year
interest = amount (rate)^t - principal((1+rate)^t -1) / rate
interest = 189000 (0.005208)^84 - 1381.45((1+0.005208)^84 -1) / 0.005208
interest = 147291.60
so
total amount interest and principal = 147291.60 + 1381.45
total amount interest and principal = $263333.4
