Answer:
$498,960.00 amount paid to the finance company.
Option D is correct.
Step-by-step explanation:
A couple gets financing for 70% of the $450,000 purchase price of a house.
First we find amount to finance by company
Finance amount = 70% of 450000 = 0.7 x 450000 = $315,000
Number of thousands in 315,000 (divide by 1000) = 315
The rate of loan is 5% on unpaid balance for 20 years.
Using table we will see the monthly payment per thousands for 5% rate in 20-years.
Monthly payments per thousands = $6.60
Number of thousands for finance value = 315
Monthly payment for finance value = 315 x 6.6 = $2079
Total amount paid to the finance company in 20 years = 20 x 12 x 2079 = $498,960
Hence, $498,960 amount paid to the finance company.
