You borrow $150,000 to buy a house.The mortgage rate is 8.5 percent and the loan period is 30 years.Payments are made monthly.If you pay for the house according to the loan agreement,how much total interest will you pay? (Round the payment to two decimal places when computing the total interest. )

Question

Quizplus · Accepted Answer

$150,000 = C ({1 - 1/[1 + (.085/12)]^{12 × 30}}/(.085/12));C = $1,153.37 Total interest = (360 × $1,153.37)- $150,000 = $265,213.20

You Borrow $150,000 to Buy a House