the lagan family bought a $150,000 home in 2002. they obtained a mortgage loan for 30 years. the monthly…

the lagan family bought a $150,000 home in 2002. they obtained a mortgage loan for 30 years. the monthly payments, not including property taxes and insurance, are $895.00. assuming these monthly payments do not change, how much interest will be paid on the house during the 30 years? (monthly payment)(12 months per year)(30 years) (895)(12)(30) = $322,200 total amount paid (principal and interest) $322,200 of interest $150,000 of interest $172,200 of interest $472,200 of interest

the lagan family bought a $150,000 home in 2002. they obtained a mortgage loan for 30 years. the monthly payments, not including property taxes and insurance, are $895.00. assuming these monthly payments do not change, how much interest will be paid on the house during the 30 years? (monthly payment)(12 months per year)(30 years) (895)(12)(30) = $322,200 total amount paid (principal and interest) $322,200 of interest $150,000 of interest $172,200 of interest $472,200 of interest

Answer

Explanation:

Step1: Calculate total amount paid

The monthly payment is $895. There are 12 months in a year and the loan is for 30 years. So the total amount paid (principal + interest) is $895\times12\times30 = 322200$.

Step2: Calculate interest amount

The principal amount of the home is $150000. The interest paid is the total amount paid minus the principal. So, Interest = $322200 - 150000=172200$.

Answer:

$172,200 of interest