Real Estate Math

A Montana buyer assumes a $150,000 mortgage with 20 years remaining at 5.5% interest. The current monthly payment is $1,032. How much total will the buyer pay over the remaining 20 years?

A$150,000
B$247,680✓ Correct
C$206,400
D$185,760

Explanation

Total payments = $1,032 x 12 months x 20 years = $1,032 x 240 = $247,680. To solve this, multiply the relevant values: $150,000 and $1,032 at 5.

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