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: $180,000.00 interest rate monthly payment 3.5% $808 5% $966 6% $1079

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: $180,000.00 interest rate monthly payment 3.5% $808 5% $966 6% $1079

Answer

Explanation:

Step1: Determine the number of payments

There are 30 years and 12 months in a year, so the number of monthly - payments $n = 30\times12=360$.

Step2: Find the total amount paid

The monthly payment at a 5% interest rate is $966$. So the total amount paid over 30 years is $A = 966\times360=$347760$.

Step3: Calculate the total interest

The principal amount is $P = 180000$. The total interest $I$ is the total amount paid minus the principal. So $I=A - P=347760 - 180000=$167760$.

Answer:

$167760$