Question

Angel Graham takes out a $150,000 mortgage. This is a 30-year at $725 per month. What is the total amount of interest that Angel will pay on this mortgage? Total Interest = $_____ 21,750 111,000 150,000 261,000

Answer 1

Total paid
725×12×30
=261,000
Total interest
261,000−150,000
=111,000

Answer 2

Graham paid an interest of $111,000.

Solution-

The mortgage amount is $150,000

The amount of money Graham is paying monthly = $725

Time = 30 years = 30 × 12 = 360 months

So, the total amount of money paid by him is,

`=360* 725=\$261,000`

As interest is the extra amount of of money paid upon the original value, so

`\text{Total interest} = 261,000-150,000=\$111,000`

Therefore, Graham paid an interest of $111,000.