Real Estate Math
A property purchased for $320,000 with 20% down payment financed at 6% for 30 years. The monthly payment on a 30-year amortizing loan at this rate is approximately $1,534. How much total interest would be paid over the full 30-year term?
A$256,000
B$296,240✓ Correct
C$300,000
D$295,200
Explanation
Loan amount = $320,000 × 80% = $256,000. Monthly payment = $1,534 (given). Total payments = $1,534 × 360 = $552,240. Total interest = $552,240 − $256,000 = $296,240. The total interest paid over 30 years significantly exceeds the original loan — illustrating the long-term cost of mortgage financing.
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