Question

Andrew is financing a condominium for $543,000. He gets a 30-year, fixed rate mortgage with a rate of 5.475%. How much interest will he pay over the life of his loan? Round to the nearest dollar.

Answer 1

First, we need to use the proper equation:

30(0.05475(543000))

We multiply inwards (you may want to use a calculator)

1.6425(543000)

Multiply again:

891877.5

Andrew will pay $891,877.50 in interest and $1,434,877.50 in total.

Answer 2

Andrew will pay $891877.5 as interest.

Explanation:

Andrew is financing a condominium for $543000 for 30 years with a fixed rate of 5.475% per year. We have to calculate the interest he will pay over the life of his loan.

As we know the formula of simple interest I of a principal amount P for the period of T years with a rate of interest R%

I = (P×T×R)/100

Here P= $543000

R=5.475% years

T = 30 tears

So I = (543000×30×5.475)/100

I = (5430×30×5.475) = $891877.5

So the interest paid by Andrew will be $891877.5