Final answer:
The total interest paid on a Php 1,000,000.00 mortgage with monthly payments of Php 38,000.00 over four years is Php 824,000.00. This is calculated by subtracting the principal amount from the total amount paid over the term of the loan.
Step-by-step explanation:
The student has asked how much is the total interest paid on a Php 1,000,000.00 mortgage if the monthly payment is Php 38,000.00 for four years. To solve this, we need to calculate the total amount paid over the four years and then subtract the principal amount from it. The monthly payments are made over 4 years (which is 48 months), so the total amount paid is: Php 38,000.00 x 48 months = Php 1,824,000.00
To find out the total interest paid, we subtract the principal amount (the original loan amount) from the total amount paid over the four years: Total interest paid = Total amount paid - Principal amount, Total interest paid = Php 1,824,000.00 - Php 1,000,000.00, Total interest paid = Php 824,000.00. Therefore, the total interest paid on the mortgage over the four years is Php 824,000.00.