Answer
Monthly payment: $\$733.76$
Total paid: $\$264,153.60$
Work Step by Step
We are given:
$A_{p}=100000, i= \frac{0.08}{12}=0.006\bar6, n=12*30=360$
The present value of an annuity is given by:
$A_{p}=R \frac{1-(1+i)^{-n}}{i}$
We solve for $R$:
$R=\frac{iA_{p}}{1-(1+i)^{-n}}:$
$R=\frac{(0.006\bar6)(100000)}{1-(1+0.006\bar6)^{-360}}={{\$}} 733.76$
Since the montly payment is $\$733.76$ and we pay over 30 years ($12*30=360$ payments), the total amount paid is:
$360*733.76=\$264,153.60$
