Sanjeep takes out a $250,000 mortgage. The yearly interest rate on the loan is 5% and the loan is for 25 years. Calculate the total amount of interest that Sanjeep will pay over the lifetime of the loan.
Round your answer to the nearest dollar.
Do NOT round until you have calculated the final answer.

Question

contestada

Respuesta :

anthougo anthougo · Answer 1 · 2022-08-16T19:35:31+02:00

If the mortgage repayment is monthly, the total interest that Sanjeep will pay over the lifetime of the loan is $188,443.

The interest on a mortgage loan is calculated monthly, with the periodic repayment also made monthly.

The total interest can be computed using an online finance calculator that shows the monthly repayment and other data as follows:

Mortgage Loan = $250,000

Down Payment = 0%

Loan Term = 25 years

Annual Interest Rate = 5%

Results:

Monthly Pay: $1,461.48

Total of 300 Mortgage Payments = $438,442.53 ($1,461.48 x 25 x 12)

Total Interest = $188,442.53

Thus, if the mortgage repayment is monthly, the total interest that Sanjeep will pay over the lifetime of the loan is $188,443.

Learn more about mortgage at https://brainly.com/question/1318711

#SPJ1