Real Estate Math

A NJ homebuyer gets a 30-year fixed loan for $320,000 at 5% annual interest. The monthly P&I payment is approximately $1,718. What is the total interest paid over the life of the loan?

A$298,480✓ Correct
B$286,150
C$318,000
D$274,000

Explanation

Total payments = $1,718 × 360 = $618,480. Total interest = $618,480 – $320,000 = $298,480. To solve this, multiply the relevant values: $320,000 and $1,718 at 5%.. The correct answer is $298,480.. This is a common calculation on the New Jersey real estate exam.

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