Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What amount did Jen owe in interest?

Question

Quizplus · Accepted Answer

Jen put 20% down, so the amount financed is:
$699,000 x 0.8 = $559,200

To calculate the amount of interest Jen will pay over the 35-year term, first calculate the total amount of payments:
n = 35 years x 12 months = 420 months
PMT = $3,169.45 (calculated using a loan amortization calculator)

Total payments = PMT x n = $3,169.45 x 420 = $1,331,194

Total interest paid = Total payments - Amount financed = $1,331,194 - $559,200 = $771,994

Therefore, Jen owes $771,994 in interest. Option C is the closest answer.

Jen Purchased a Condo in Naples, Florida, for $699,000