Richard Miyashiro purchased a condominium and obtained a 20-year loan of $196,000 at an annual interest rate of 8.30%. (Round your answers to the nearest cent.)(a) What is the mortgage payment? $(b) What is the total of the payments over the life of the loan? $(c) Find the amount of interest paid on the mortgage loan over the 20 years. $

Answer:(a) $ 1,676.21(b) $ 402,289.22(c) $ 206,289.22Step-by-step explanation:Given,The present amount of the loan, PV = $ 196,000Time = 20 years,So, the number of months, n = 12 × 20 = 240Also, the annual rate = 8.30 % = 0.083,So, the monthly rate, r = [tex]\frac{0.083}{12}[/tex](a) Hence, the mortgage payment or monthly payment,[tex]P=\frac{(PV)r}{1-(1+r)^{-n}}[/tex][tex]P=\frac{196000(\frac{0.083}{12})}{1-(1+\frac{0.083}{12})^{-240}}[/tex][tex]=\$ 1676.20508437[/tex][tex]\approx \$ 1676.21[/tex](b) The total payment = monthly payment × number of periods= 402289.220249≈ $ 402,289.22(c) Interest paid = total payment - present value of loan= 402289.22 - 196,000= $ 206,289.22