Real Estate Math

A Kentucky buyer takes out a $275,000 mortgage for 30 years at 5%. Their monthly P&I payment is $1,476. After 10 years of payments, approximately how much total interest has been paid?

A$137,120✓ Correct
B$145,600
C$155,500
D$163,400

Explanation

10 years of payments = 120 × $1,476 = $177,120 total paid. Principal paid in 10 years ≈ $40,000 (rough estimate). Total interest ≈ $177,120 − $40,000 = $137,120.

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