how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the…

how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the table? mortgage payments principal: $200,000.00 interest rate monthly payment 3% $843 4% $955 5% $1074

how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the table? mortgage payments principal: $200,000.00 interest rate monthly payment 3% $843 4% $955 5% $1074

Answer

Explanation:

Step1: Determine number of payments

The mortgage is 30 - year and payments are monthly. So the number of payments $n=30\times12 = 360$.

Step2: Calculate total amount paid

The monthly payment at 4% interest rate is $955$. So the total amount paid over 30 years is $955\times360$. $955\times360 = 343800$.

Step3: Calculate total interest paid

The principal amount is $200000$. The total interest $I$ is the total amount paid minus the principal. $I=343800 - 200000$. $I = 143800$.

Answer:

$143800$