Question

The principal balance of a loan is $360,000. The monthly principal and interest payment will be $2,160 per month for 30 years. How much interest will be paid over the term of the loan? $288,000, $360,000, $417,600 or $777,600?

Answer 1

The total amount repaid will be
.. monthly payment × number of months
.. = $2,160 × 360
.. = $777,600
Subtracting the amount of the principal that was repaid gives the interest.
.. $777,600 -360,000 = $417,600 . . . . total interest paid