Answer:
Option B : $173,250
Explanation:
Total Amount paid after 30 years = $725/month × 12month × 30 years
Total Amount paid after 30 years = $261,000
Interest + Original Cost = Total Amount
Interest -= 261,000-87,750
Interest = 173,250
Answer:
Option "B" is the correct answer to the following statement
Explanation:
Given:
Mortgage loan amount = $87,750
Number of years = 30 years
Monthly payment = $725
Amount of interest paid = ?
Computation of total amount paid:
Total amount paid = Monthly payment × 12 × Total number of year
Total amount paid = $725 × 12 × 30
Total amount paid = $261,000
Computation of total interest paid:
Total interest paid = Total amount paid - Mortgage loan amount
Total interest paid = $261,000 - $87,750
Total interest paid = $173,250
