Question

Terry took out a mortgage loan for $100,000 at an interest rate of 11.5% for 30 years. if terry had not had a bankruptcy on her credit report, her payments could have been $524.07 per month. how much is terry paying in additional interest over the life of the loan?

Answer 1

Because Terry had a bankruptcy on her credit report, the additional amount of interest that Terry is paying over the life of the loan is $167,839.720.

What is interest?

Interest is the finance charge for a loan or mortgage.

It is calculated on the principal amount based on the agreed rate and maturity period of the loan.

We can compute the interest using an online finance calculator as below.

Data and Calculations:

Home Price= $100,000

Down Payment = 0%

Loan Term = 30 years

Interest Rate = 11.5%

Monthly Payment:   $990.29

Normal monthly payment (without a bankruptcy) = $524.07

Total of 360 Mortgage Payments = $356,504.92 ($990.29 x 30 x 12)

Total of 360 Mortgage Payaments without bankruptcy = $188,665.20 ($524.07 x 30 x 12)

Additional payment in interest = $167,839.720 ($356,504.92 - $188,665.20)

Thus, the additional amount of interest that Terry is paying over the life of the loan is $167,839.720.

Learn more about interest calculations at brainly.com/question/25545513

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