The total cost of interest on a home purchased for $200,000 with 30% down at 7% for 35 years is $235,732.

Question

Quizplus · Accepted Answer

The total cost of interest is calculated as the difference between the total amount paid and the principal amount borrowed. In this case, the total amount paid is $200,000 * (1 - 0.3) * (1 + 0.07)^35 = $435,732, and the principal amount borrowed is $200,000 * (1 - 0.3) = $140,000. Therefore, the total cost of interest is $435,732 - $140,000 = $235,732.

The Total Cost of Interest on a Home Purchased for $200,000