Question

The Lagan family bought a $150,000 home in 2002. They obtained a mortgage loan for 30 years. The monthly payments, not including property taxes and insurance, are $895.00. Assuming these monthly payments do not change, how much interest will be paid on the house during the 30 years

Answer 1

$172,200 will be paid on the house during last 30 years and Simple Interest is $322,200.

What is Simple Interest?

• Simple interest is a quick and simple formula for Figuring out how much interest will be charged on a loan.
• The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.

• Although some mortgages employ this calculation approach, this kind of interest typically relates to auto loans or short-term loans.

• Consumers who pay their loans off on time or ahead of schedule each month benefit from simple interest.

• Simple interest loans are frequently used for auto loans and short-term personal loans.

Total amount paid = (895)(12)(30) = $322,200

$322,200-$150,000 = $172,200

Know more about Simple Interest with the help of the given link:

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