Step 1 :Susan Carver will purchase a home for \$290,000. She will use a down payment of 21\% and finance the remaining portion at 9.6\%, compounded monthly for 15 years.
Step 2 :First, we need to calculate the amount that Susan will finance. This is the total cost of the home minus the down payment. The down payment is 21\% of the total cost of the home, which is \$290,000 * 0.21 = \$60,900. So, the financed amount is \$290,000 - \$60,900 = \$229,100.
Step 3 :Next, we need to calculate the total amount of interest paid over the course of 15 years. This can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (in decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.
Step 4 :In this case, P is the amount that Susan will finance, which is \$229,100, r is 9.6\%, which is 0.096, n is 12 (since interest is compounded monthly), and t is 15. So, A = \$229,100 * (1 + 0.096/12)^(12*15) = \$961,437.08.
Step 5 :The total amount of interest paid is then A - P, which is \$961,437.08 - \$229,100 = \$732,337.08.
Step 6 :Final Answer: The amount of interest that will be paid is \(\boxed{\$732,337.08}\).