Question

Sam takes out a $167,000 mortgage for 20 years. He makes monthly payments and at the end calculates that he has paid $240,141 towards the mortgage. What is the approximate APR?

3%
4%
6%
7%

Answer 1

About 3%

Explanation:

3% of $167,000 is $5,010

5010 times the 20 years is 100200 add that to the 167000 and you get $267,200

The actual answer is about 2.4% but 3% is the closest.