Question

Help please!!!!

Amara has taken out a fixed rate mortgage for $125,000 at 4.04% for 20 years, or 240 months. Her payments are $730. What is the total cost of the loan?
A. $130,050
B. $175,200
C. $211,680
D. $226,000

Answer 1

Hello, the total cost of the loan is $175,200 i have the same question on my previous exam and did the work to double check

Answer 2

B. $175,200

Explanation:

Monthly payment

• $730

Number of payments

• 240

Total cost of the loan is:

• $730*240 = $175200

Correct answer choice is: B