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?\nmortgage payments\nprincipal: $120,000.00\ninterest rate monthly payment\n3% $506\n4% $573\n5% $644

how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the table?\nmortgage payments\nprincipal: $120,000.00\ninterest rate monthly payment\n3% $506\n4% $573\n5% $644

Answer

Explanation:

Step1: Calculate total payments

The mortgage is for 30 - years. There are 12 months in a year, so the total number of payments is $n = 30\times12=360$ months. The monthly payment at a 4% interest rate is $M = 573$ dollars. The total amount paid over 30 years is $T = M\times n$. So, $T=573\times360$. $T = 573\times360=206280$ dollars.

Step2: Calculate interest amount

The principal amount of the mortgage is $P = 120000$ dollars. The total interest paid $I$ is the total amount paid minus the principal amount. So, $I=T - P$. $I=206280-120000 = 86280$ dollars.

Answer:

$86280$