Real Estate Math

A Wyoming buyer obtains an $180,000 loan at 6.5% for 30 years. How much total interest does the buyer pay over the life of the loan if the monthly payment is $1,138?

A$109,680
B$229,680✓ Correct
C$195,228
D$409,680

Explanation

Total payments = $1,138 x 360 months = $409,680. Total interest = Total payments - Loan amount = $409,680 - $180,000 = $229,680.

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