Real Estate Math

A borrower pays $1,610/month in principal and interest on a 30-year fixed mortgage at 6.5%. If the original loan amount was $254,000, how much total interest is paid over the life of the loan?

A$325,600✓ Correct
B$254,000
C$579,600
D$271,400

Explanation

Total payments = $1,610 × 360 = $579,600. Total interest = $579,600 − $254,000 = $325,600.

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