We will have the following:
First, we determine the monthly rate:
[tex]r_m=\frac{0.07}{12}=\frac{7}{1200}[/tex]Now, we determine the monthly payment:
[tex]\begin{gathered} A=P\frac{(1+r_m)^n}{(1+r_m)^n-1} \\ \\ \Rightarrow A=60000\frac{(1+(7/1200))^{^{240}}}{(1+(7/1200))^{240}-1}\Rightarrow A\approx465.18 \end{gathered}[/tex]So, the monthly payment will be approximately $465.18.
The total amount paid will be:
[tex]\begin{gathered} X=A\ast n\ast t \\ \\ \Rightarrow X=(465.18)(12)(20)\Rightarrow X\approx111643.2 \end{gathered}[/tex]So, the total payment will be approximately $111 643.2.
The cost of the mortgage is:
[tex]c=111643.2-60000\Rightarrow c\approx51643.2[/tex]So, the cost of the mortgage is approximately $51 643.2.
