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Angel Graham takes out a $150,000 mortgage. This is a 30-year at $725 per month. What is the total amount of interest that Angel will pay on this mortgage?

Total Interest = $_____

User Melo
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1 Answer

2 votes

Answer:

$111, 000

Explanation:

Morgage amount is given as $150, 000

Repayment plan

Every month, Angel pays $725

Therefore, every year, Angel repays $725*12=$8700

The plan goes for 30 years hence

Total amount paid after 30 years will be $8700*30=$261, 000

Interest =Total payment-morgage value

Interest paid=261000-150000=111000

Therefore, total interest is $111, 000

User Yaroslav Basovskyy
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