how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the…

how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the table? mortgage payments principal: $120,000.00 interest rate monthly payment 3% $506 4% $573 5% $644

how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the table? mortgage payments principal: $120,000.00 interest rate monthly payment 3% $506 4% $573 5% $644

Answer

Explanation:

Step1: Determine the total number of payments

The mortgage is for 30 - years and payments are monthly. So the number of payments $n=30\times12 = 360$.

Step2: Find the total amount paid

The monthly payment at a 4% interest rate is $573$. So the total amount paid over 30 years is $573\times360$. $573\times360 = 206280$.

Step3: Calculate the interest amount

The principal amount is $120000$. The interest amount $I$ is the total amount paid minus the principal. $I=206280 - 120000$. $I = 86280$.

Answer:

$86280$