Question

The principle balance of a loan is $360,000. The monthly principal and interest payment will be $2,160 per month for 30 years. How much interest will be paid over the term of the loan? $360,000

$777,600
$288,000
$417,600

Answer 1

The total of 360 monthly payments is

... 360 × $2160 = $777,600

The difference between this amount and the principal balance is the amount of interest paid.

... $777,600 - 360,000 = $417,600