Lars is planning to purchase a home. he has been approved for a $420,000, 20-year mortgage with an apr of 5.125%.
what is his monthly payment?
what is the total interest paid after 20 years?
suppose lars gets the loan from another bank with the same apr but a 30 year mortgage. what would be his monthly payment?
what would be the total interest paid after 30 years?
what is the difference between the two monthly payments?
what is the difference between the interest paid?

Wow - you are asking a LOT of questions.  The Monthly Payment Formula is really tricky so I'll solve that for you.  

The time of the loan = 20 years * 12 = 240 months

We have to convert the annual rate to a monthly rate and that is done by:

monthly rate = 5.125 / 1,200 = 0.00427083333333333

Monthly pmt = 0.00427083333333333 + [0.00427083333333333 / (1.00427083333333333^240) -1 ] * 420,000

Monthly pmt = 0.00427083333333333 + [0.00427083333333333 / 2.7810190076 -1] * 420,000

Monthly pmt = (0.00427083333333333 +0.0023979718) * 420,000

Monthly pmt = 2,800.90

A calculator to double check is here: https://www.1728.org/calcloan.htm

Step-by-step explanation:

y/x=18

step-by-step explanation: