Final answer:
To calculate the amount of interest that Brad will pay over the course of the loan, you can use the formula for calculating the monthly payment on a mortgage. The monthly payment is $2,242.07 and the total interest paid over 30 years is approximately $405,945.19.
Step-by-step explanation:
To calculate the amount of interest that Brad will pay over the course of the loan, we need to use the formula for calculating the monthly payment on a mortgage. The formula is:
Monthly Payment = Loan Amount * (Monthly Interest Rate / (1 - (1 + Monthly Interest Rate)-Months))
In this case, the loan amount is $520,000 and the APR is 3.2%. We need to convert the APR to a monthly interest rate by dividing it by 12. Month is 30*12=360. Plugging in these values into the formula, we get:
Monthly Payment = $520,000 * (0.032 / (1 - (1 + 0.032)-360))
Using a financial calculator or spreadsheet software, we can calculate that the monthly payment is approximately $2,242.07. Now, to calculate the total interest paid over 30 years, we can multiply the monthly payment by the number of months in the loan and subtract the loan amount:
Total Interest = (Monthly Payment * Months) - Loan Amount
Total Interest = ($2,242.07 * 360) - $520,000
Calculating this expression, we find that Brad will pay approximately $405,945.19 in interest over the course of the loan.