The total interest on the mortgage loan is $219,249.60
What is a mortgage loan?
It is a loan taken in order to purchase a property that requires periodic repayments such as monthly repayment since most mortgages are repaid monthly.
Our first task is to determine the monthly repayment using the present value formula of an ordinary annuity because the monthly payment becomes due at the end of each month.
PV=monthly repayment*(1-(1+r)^-N/r
PV=loan amount=$210,000
monthly repayment=unknown(assume it is X)
r=monthly interest rate=5.5%/12=0.00458333333333333
N=number of monthly payments in 30 years=30*12=360
$210,000=X*(1-(1+0.00458333333333333)^-360/0.00458333333333333
$210,000=X*(1-(1.00458333333333333)^-360/0.00458333333333333
$210,000=X*(1-0.19277525234572900)/0.00458333333333333
$210,000=X*0.80722474765427100/0.00458333333333333
$210,000=X*176.12176312456800000
X=$210,000/176.12176312456800000
X=monthly payment=$1,192.36
total repayments(360 months)=$1,192.36*360
total repayments(360 months)=$429,249.60
Total interest=total repayments(360 months)-loan amount
Total interest=$429,249.60-$210,000
Total interest=$219,249.60
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