Question

Amara has a fixed rate mortgage for $145,000 at 4.04% for 20 years. Her payments are $882 per month. What is the total cost of the loan?

A) $150,858
B) $170,640
C) $211,680
D) $262,160

Answer 1

The total cost of Amara's fixed rate mortgage of $145,000 at 4.04% over 20 years, with monthly payments of $882, is $211,680 (option C).

Step-by-step explanation:

The subject of this question is Mathematics, specifically related to loans and financial calculations. Amara has a fixed-rate mortgage of $145,000 at 4.04% for 20 years with monthly payments of $882. To find the total cost of the loan, we multiply the monthly payment by the number of months over which payments are made: Total cost of the loan = Monthly payment × Number of months, Total cost of the loan = $882 × (20 years × 12 months/year), Total cost of the loan = $882 × 240, Total cost of the loan = $211,680. Therefore, the total cost of Amara's loan will be $211,680, which corresponds to option C.