Answer:
The interest of the mortgage is 72.2% of the total payment amount .
Step-by-step explanation:
The principal mortgage amount = P = $178,000
Let The amount after 30 years = $A
The period for which money mortgage = n = 30 years
The rate at which money mortgage for 30 years = 4.37%
Let the interest is x % of the total payment amount
From Compound interest method
The amount after 30 years =The principal mortgage amount × [tex](1+\dfrac{\textrm rate}{100})^{\textrm time}[/tex]
i.r A = P × [tex](1+\dfrac{\textrm r}{100})^{\textrm n}[/tex]
Or, A = 178,000 × [tex](1+\dfrac{\textrm 4.37}{100})^{\textrm 30}[/tex]
Or, A = 178,000 × [tex](1.0437)^{30}[/tex]
Or, A = 178,000 × 3.6080
Or, A = $642224
So, The amount after 30 years = A = $642224
Now, Interest = Amount - Principal
Or, I = $A - $P
Or, I = $642224 - $178,000
∴ Interest = I = $464,224
So, The interest of the mortgage = I = $464,224
Now, Again
interest = x % of total payment amount
So, $464,224 = [tex]\dfrac{x}{100}[/tex] × $642224
∴ [tex]\dfrac{x}{100}[/tex] = [tex]\dfrac{464224}{642224}[/tex]
∴ [tex]\dfrac{x}{100}[/tex] = 0.722
i.e x% = 0.722
So, The interest is 72.2% of total payment
Hence,The interest of the mortgage is 72.2% of the total payment amount . Answer
