Question

Greg and Kathy are considering purchasing a home requiring an $85,000 mortgage. The payment on a 30-year mortgage for this amount is $605. The payment for a 15-year mortgage is $752. What is the additional amount of interest paid on the 30-year mortgage?

A) $82,440
B) $52,920
C) $135,360
D) $26,460

Answer 1

The additional amount of interest paid on the 30-year mortgage is $147.

Step-by-step explanation:

To find the additional amount of interest paid on the 30-year mortgage, we need to subtract the total payment made on the 15-year mortgage from the total payment made on the 30-year mortgage. The additional amount of interest paid on the 30-year mortgage is $752 - $605 = $147. Therefore, none of the given options (A, B, C, or D) represent the correct answer.