Question

Bennie took out a 30-year loan for $165,000 at 5.2% interest, compounded monthly. If his monthly payment on the loan will remain $906.03 for the life of the loan, how much will Bennie have paid in interest once the loan is paid off?

A. $165,000
B. $161,170.80
C. $257,400.00
D. $326,170.80

Answer 1

Answer: B 161,170.80

Explanation:

Answer 2

Bennie makes 360 payments of $906.03 for a total of $326,170.80. That's $161,170.80 more than the principal amount, so he paid $161,170.80 in interest.
So the answer is B $161,170.80