Real Estate Math
A Michigan buyer obtains a 30-year mortgage for $240,000 at 6.5% interest. The monthly PI payment is approximately $1,517. What is the total interest paid over the life of the loan?
A$36,408
B$156,000
C$306,120✓ Correct
D$546,120
Explanation
Total payments: $1,517 × 360 = $546,120. Total interest: $546,120 - $240,000 principal = $306,120. Over 30 years, the borrower pays significantly more in interest than principal.
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