Real Estate Math

A Kansas buyer obtains a $175,000 30-year mortgage. Using a monthly payment factor of $6.65 per $1,000 at 7%, what is the total amount paid in interest over the life of the loan?

A$38,275
B$84,000
C$113,850
D$243,950✓ Correct

Explanation

Monthly payment = 175 × $6.65 = $1,163.75. Total payments = $1,163.75 × 360 = $418,950. Total interest = $418,950 - $175,000 = $243,950. Closest: $139,150 — this appears to be off; actual is $243,950.

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