Question

You borrow $149,000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay?

Answer 1

Interest: $226,058.66

pmt for each month

7.5%/12 = 0.00625 for 30 12 =

360 months comes out to be 1041.83

total amount repaid =71041.83*

360 = 375058.66

the difference between the amount repaid and loan amount is the interest paid.