Constance Hairston obtains a 20-year, $133,750 mortgage at 11% on a house selling for $159,000. Her monthly payment, including principal and interest, is $1380.55. How much of the total cost
Will be interest?

Question

Quizplus · Accepted Answer

To find the total interest paid, calculate the total payments over 20 years: $1380.55 * 12 months * 20 years = $331,332. Subtract the principal amount of $133,750 from this total to get the interest paid: $331,332 - $133,750 = $197,582. The percentage of the total cost that is interest is ($197,582 / $331,332) * 100% = 59.6%.

Constance Hairston Obtains a 20-Year, $133,750 Mortgage at 11% on a House