Question

Karen is financing a $285,000 mortgage for 30 years at a fixed rate of 7.15%. What is the total cost of the principal and interest after 30 years?

Answer 1

Correct answer: $692,967.60

Answer 2

692967/-

Explanation:

Given that Karen is financing 285,000 dollars mortgage for 30 years at a fixed rate of 7.15%

Tenure = 30 years

Let us use amortisation calculator to find out the total cost of prinicipal and interest.

WE find that

Equal monthly instalment = 1924.91

Total interest paid = 407967

Total cost =407967+285000 =692967/-