Finance

A Montana buyer obtained a $200,000 loan at 6.5% interest for 30 years. The monthly principal and interest payment is approximately $1,264. Over the life of the loan, how much total interest will be paid?

A$55,104
B$130,000
C$254,960✓ Correct
D$455,040

Explanation

Total payments = $1,264 x 360 = $455,040. Total interest = $455,040 - $200,000 (principal) = $255,040, approximately $254,960.

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