how much money will be spent in interest alone over the course of the 3% 30 - year mortgage described in the…
how much money will be spent in interest alone over the course of the 3% 30 - year mortgage described in the table?\nmortgage payments\nprincipal: $150,000.00\ninterest rate monthly payment\n3% $632\n4% $716\n5% $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 $n = 30\times12=360$ months. The monthly payment at 3% interest rate is $632$. So the total amount paid over 30 - years is $632\times360$. $632\times360 = 227520$
Step2: Calculate interest amount
The principal amount of the mortgage is $150000$. The interest amount $I$ is the total amount paid minus the principal amount. $I=227520 - 150000$ $I = 77520$
Answer:
$77520$