Question

Jackie Swain obtains a $65,000 loan on her home. The principal and interest payments are based on a factor of 8.05 per $1,000. The loan is for 30 years at 9%. How much does Jackie pay in total interest over the life of the loan?

Answer 1

total interest paid = $123,370

Step-by-step explanation:

given data

loan = $65,000

factor = 8.05 per $1,000

time = 30 year = 30 year × 12 months = 36 months

rate = 9% = 0.09

solution

first we get here payments on principal and interest for factor 8.05 per $1,000 will be

payments on principal and interest = $65 × 8.05

payments on principal and interest = $523.25 per month

payments on principal and interest = 523.25 × 360 months

payments on principal and interest = $188,370

so total interest paid will be

total interest paid = $188,370 - $65,000

total interest paid = $123,370