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what is the total interest paid on a 30 year loan for 200,000 at 8% when the monthly payment is $1467

2 Answers

3 votes

Final answer:

To calculate the total interest paid on a 30-year loan, multiply the monthly payment by the number of payments and subtract the loan amount. The provided monthly payment seems incorrect for a $200,000 loan at 8%, and a correct monthly payment would be needed for an accurate calculation.

Step-by-step explanation:

The student is asking about the total interest paid on a 30-year loan for $200,000 at an 8% interest rate when the monthly payment is $1467. To calculate the total interest paid over the life of a loan, you would multiply the monthly payment amount by the number of payments (360 for a 30-year loan), and then subtract the original loan amount from the total of these payments. Unfortunately, we have a discrepancy because the monthly payment provided ($1467) does not match the typical monthly payment for a loan of this size and terms. However, assuming a correct monthly payment figure is provided, the formula would be:

Total Interest Paid = (Monthly Payment × Total Number of Payments) − Original Loan Amount

Using the given monthly payment, if it were correct, the total interest would be calculated as follows:

Total Interest Paid = ($1467 × 360) − $200,000

But, since the information provided regarding the monthly payment of $1467 is likely incorrect given the context of an 8% interest loan for $200,000 over 30 years, a new calculation using the correct figure for monthly payments is required to accurately assess the total interest paid.

3 votes

The total interest paid on the 30-year loan for $200,000 is $328,120.

An interest is the amount of money earned or paid on a principal amount over a specific time period. They can be expresse as a percentage of the principal.

Information:

Total Number of Payments = 30 years * 12 months/year = 360 months

Monthly payment = $1,467

Principal = 200,000

Total Interest = (Monthly Payment * Total Number of Payments) - Principal Loan Amount

= ($1,467 * 360) - $200,000

= $528,120 - $200,000

= $328,120.

Therefore, the total interest paid on the 30-year loan for $200,000 is $328,120.

User Andy Whitfield
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