Question

If Bob pays $695.20 for principal and interest every month for 30 years on his $110,000 loan, how much interest will he pay over the life of the loan

Answer 1

$140,272

Step-by-step explanation:

Calculation for how much interest will he pay over the life of the loan

First step is to calculate the Total payment

Total payment= (695.20 x 12 months x 30 years Total payment= $250,272

Last step is to calculate the interest amount Using this formula

Interest=Total payment-Principal

Let plug in the formula

Interest= $250,272- $110,000

Interest=$140,272

Therefore the amount of interest he will pay over the life of the loan is $140,272