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A recently married couple secure a home loan for 289,000 at 2.985% for 30 years. How...

A recently married couple secure a home loan for 289,000 at 2.985% for 30 years. How much interest will they have paid at the end of the loan?

Solutions

Expert Solution

Loan value at the end of year 30
FV= PV*(1+r)^n
Where,
FV= Future Value
PV = Present Value
r = Interest rate
n= periods in number
= $289000*( 1+0.02985)^30
=289000*2.41668
= $698420.6
Interest to be paid = $698420.6-289000
=$409420.60

jeff jeffy answered 2 years ago
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