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How much money will be spent in interest alone over the course of the 3% 30-year mortgage

User Gyoho
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Based on an online finance calculator, the total interest is $108,600 in interest alone over the course of the 30-year mortgage at 3%.

How the total interest is computed:

The total interest is the difference between the total periodic payments and the principal.

N (# of periods) = 360 (30 years x 12)

I/Y (Interest per year) = 3%

PV (Present Value) = $210,000

PMT (Periodic Payment) = $885

Results:

Sum of all periodic payments = $318,600.00 ($885 x 360)

Total Interest = $108,600 ($318,600 - $210,000)

Complete Question:

Mortgage payments Principal: $210,000.00 = 3%

How much money will be spent in interest alone over the course of the 3% 30-year mortgage described in the table?

Interest Rate Monthly Payment

3% $885

3.5% $943

4.25% $1,033

A. $8,925

B. $161,880D.

C. $210,000

D. $371,880

User DhrubaJyoti
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