Real Estate Math

A buyer borrows $360,000 at 6% for 30 years. The monthly P&I payment is $2,158. How much total interest will be paid over the life of the loan?

A$216,000
B$261,744
C$417,880
D$416,880✓ Correct

Explanation

Total paid = $2,158 × 360 months = $776,880. Total interest = $776,880 − $360,000 = $416,880. To solve this, multiply the relevant values: $360,000 and $2,158 at 6%.. The correct answer is $416,880.. This is a common calculation on the Connecticut real estate exam.

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