A mortgage loan of $132,000 at 6% compounded semi-annually is to be amortized over 25 years by equal monthly payments. How much interest will be paid during the first three years?

Question

Quizplus · Accepted Answer

The interest paid during the first three years can be calculated by first determining the monthly payment using the loan amount, interest rate, and amortization period. Then, calculate the total payments made in the first three years and subtract the principal repaid from the total payments to find the interest paid.

A Mortgage Loan of $132,000 at 6% Compounded Semi-Annually Is