Real Estate Math

A Virginia buyer finances $320,000 at 5.5% for 30 years. The monthly payment (P&I only) is approximately $1,817. How much total interest is paid over the life of the loan?

A$334,120✓ Correct
B$344,120
C$320,000
D$305,000

Explanation

Total payments = $1,817 × 360 = $654,120. Total interest = $654,120 – $320,000 = $334,120.

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