Question

A loan used for buying a home is called a mortgage. The Fortunato family is borrowing $430,000 to buy a home. They are taking out a 30-year mortgage at a rate of 3.55%. What is the interest paid on the house?

Answer 1

The interest paid on the house is $455,850.

Step-by-step explanation:

To calculate the interest paid on the house, we can use the formula:

Interest Paid = Total Loan Amount x Interest Rate x Loan Term

In this case, the Total Loan Amount is $430,000, the Interest Rate is 3.55%, and the Loan Term is 30 years.

Substituting these values into the formula, we get:

Interest Paid = $430,000 x 0.0355 x 30

Interest Paid = $455,850

So, the interest paid on the house is $455,850.