You borrow $110,000 from the bank to be paid monthly over the next 25 years. If interest is 7.5% compounded monthly, how much interest will you pay (in dollars) over the life of the loan? (Assume you make each of the required 300 payments on time.)

Question

Quizplus · Accepted Answer

The correct answer is A.The total interest paid over the life of the loan is $133,867. This is calculated by subtracting the principal amount of the loan ($110,000) from the total amount paid back to the bank ($243,867).

You Borrow $110,000 from the Bank to Be Paid Monthly