Your current $115,000 mortgage calls for monthly payments over 30 years at an annual rate interest rate of 7 percent. If you pay an additional $50 each month beginning with the first payment, how much interest expense do you save by pre-paying?

Question

Quizplus · Accepted Answer

The correct answer is A because it is the only choice that is within $100 of the correct answer. The correct answer is $32,764.43. This is calculated by taking the difference between the total interest paid on the loan without pre-paying ($147,764.43) and the total interest paid on the loan with pre-paying ($115,000).

Your Current $115,000 Mortgage Calls for Monthly Payments Over 30