Finance
A North Dakota homebuyer obtains a 30-year fixed-rate mortgage at 7% for $280,000. Over the life of the loan, they will pay:
AExactly $280,000 in total
BSignificantly more than $280,000 due to interest payments✓ Correct
CLess than $280,000 due to principal reduction
DThe same amount regardless of the interest rate
Explanation
With a 30-year mortgage at 7%, the borrower will pay substantial interest over the loan term. The total amount paid over 30 years (principal plus interest) will far exceed the original loan amount of $280,000.
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