Question

Total interest paid on a 30-year straight note was $230,000 during the term of the loan. The annual interest rate was 6.6%. What was the loan amount?

Answer 1

Answer:

$116,161.616

Explanation:

Given that,

Total interest paid = $230,000

Time period = 30 year

Annual interest rate = 6.6%

Total interest on loan = Loan amount × Interest rate × Time period

$230,000 = Loan amount × 6.6% × 30 years

Loan amount:

$=\frac{230,000}{0.066\times 30}$

$=\frac{230,000}{1.98}$

      = $116,161.616

Therefore, the loan amount is $116,161.616.