Real Estate Math

A West Virginia buyer obtains a $200,000 loan at 6% annual interest for 30 years. Approximately how much total interest will be paid over the life of the loan, given monthly payments of approximately $1,199?

A$131,640
B$231,640✓ Correct
C$251,640
D$200,000

Explanation

Total payments = $1,199 x 360 months = $431,640. Total interest = $431,640 - $200,000 = $231,640.

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