A mortgage loan of $132,000 at 6% compounded semi-annually is to be amortized over 25 years 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 determining the monthly payment using the loan amount, interest rate, and amortization period, then calculating the total payments over three years and subtracting the principal repaid. The correct calculation results in $22,834 in interest paid.

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