Question

Mrs. Smith received a notice from her lender that last year her total interest paid was $6,090 on her $58,000 mortgage. Mrs. Smith wants to verify that she is not paying more interest than the mortgage agreement states. What interest is she paying?

Answer 1

10.5%

Step-by-step explanation:

From the information provided in the question it seems that the amount of interest that Mrs. Smith is currently paying is that of 10.5%. This can be calculated by dividing the total interest paid by the mortgage amount, and then multiplying by 100 in order to turn the decimal into a percentage. Like so

$6,090 / $58,000 = 0.105

0.105 * 100 = 10.5%