You borrow $250,000 toward the purchase of a home. The loan will be paid off in equal monthly installments over 30 years. If the interest rate charged is 6 percent per year:

a) How much interest is paid over 30 years?

b) How quickly is the loan paid off if you chose to increase your Monthly payment by $100?

Answer rating: 100% (QA)

a To calculate the total interest paid over 30 years we need to calculate the monthly payment first ... View the full answer