how much money will be spent in interest alone over the course of the 5% 30 - year mortgage described in the…

how much money will be spent in interest alone over the course of the 5% 30 - year mortgage described in the table?\nmortgage payments\n|principal: $150,000.00|\n|interest rate|monthly payment|\n|3%|$632|\n|4%|$716|\n|5%|$805|

how much money will be spent in interest alone over the course of the 5% 30 - year mortgage described in the table?\nmortgage payments\n|principal: $150,000.00|\n|interest rate|monthly payment|\n|3%|$632|\n|4%|$716|\n|5%|$805|

Answer

Explanation:

Step1: Calculate total payments

The mortgage is for 30 years. Since there are 12 months in a year, the total number of months $n = 30\times12=360$. The monthly payment at a 5% interest - rate is $805$. So the total amount paid over 30 years is $805\times360$. $805\times360 = 289800$

Step2: Calculate interest amount

The principal of the mortgage is $150000$. The total interest paid is the total amount paid minus the principal. $I=289800 - 150000$ $I = 139800$

Answer:

$139800$