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? 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 5% 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 the number of payments

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

Step2: Calculate the total amount paid

The monthly payment at 5% interest rate is $1074$. So the total amount paid over 30 years is $1074\times360$. $1074\times360 = 386640$.

Step3: Calculate the interest amount

The principal amount is $200000$. The interest amount $I$ is the total amount paid minus the principal. $I=386640 - 200000$. $I = 186640$.

Answer:

$186640$