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A buyer obtained a 30-year fixed-rate loan for $72,000 at a 5% annual interest rate. If the monthly debt service payment is $386.64, how much interest rounded to the nearest dollar would the buyer pay over the lifetime of the loan?

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jepessoa

Answer:

$67,190

Explanation:

During the 30 years, the borrower will end up paying:

$386.64 monthly payment x 12 months per year x 30 years = $139,190.40

Of the total amount, $139,190, only $72,000 was repayment of principal, then the amount of interest that the buyer paid:

$139,190 - $72,000 = $67,190

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