Question

Bradley Corporation executes a 15-year $200,000 mortgage in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments and the annual interest rate is 12%. Over the life of the mortgage, the total amount that will be paid for interest is closest to?

Answer 1

$1,013.37Step-by-step explanation:

Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible. Home equity loans are limited to $100,000 or the amount of equity you have in your home. Our calculator limits your interest deduction to the interest payment that would be paid on a $1,000,000 mortgage.The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.