Real Estate Math

A 30-year amortized loan of $400,000 at 6.5% has a monthly payment of $2,528. What is the total interest paid over the life of the loan?

A$510,080✓ Correct
B$400,000
C$109,280
D$512,500

Explanation

Total payments = $2,528 × 360 = $910,080. Total interest = $910,080 − $400,000 (principal) = $510,080.

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