Question

i need help with this problem..Yolanda took out a 30-year mortgage for $80,000 at 10% How much wills he pay over money year? i assume 2666.66

Answer 1

Step 1:

Most mortgages are also simple interest loans, although they can certainly feel like compound interest. In fact, all mortgages are simple interest except those that allow negative amortization. An important thing to pay attention to is how the interest accrues on the mortgage.

Step 2:

$Interest\text{ = }\frac{Prt}{100}\text{ }$

Step 3:

Write the given data

P = $80000

t = 30 years

r = 10%

Step 4

$\begin{gathered} \text{Interest = }\frac{80000\text{ }\times\text{ 30 }\times\text{ 10}}{100} \\ \text{Interest = \ 240000} \end{gathered}$

Final answer

Interest = $240000