how much money will be spent in interest alone over the course of the 3% 30 - year mortgage described in the…

how much money will be spent in interest alone over the course of the 3% 30 - year mortgage described in the table? mortgage payments principal: $210,000.00 interest rate monthly payment 3% $885 3.5% $943 4.25% $1033

how much money will be spent in interest alone over the course of the 3% 30 - year mortgage described in the table? mortgage payments principal: $210,000.00 interest rate monthly payment 3% $885 3.5% $943 4.25% $1033

Answer

Explanation:

Step1: Calculate total payments

The mortgage is for 30 - years. Since there are 12 months in a year, the total number of months $n=30\times12 = 360$ months. The monthly payment is $885$. So the total amount paid over 30 years is $885\times360$. $885\times360 = 318600$

Step2: Calculate interest amount

The principal amount of the mortgage is $P = 210000$. The total interest paid $I$ is the total amount paid minus the principal amount. $I=318600 - 210000$ $I = 108600$

Answer:

$108600$