Greg and Kathy are considering purchasing a home requiring an $85,000 mortgage. The payment on a 30-year mortgage for this amount is $605. The payment for a 15-year mortgage is $752. What is the additional amount of interest paid on the 30-year mortgage?
A) $82,440
B) $52,920
C) $135,360
D) $26,460

Question

Quizplus · Accepted Answer

The total payment for the 30-year mortgage is $605 * 12 * 30 = $217,800. For the 15-year mortgage, it's $752 * 12 * 15 = $135,360. The difference in total payments is $217,800 - $135,360 = $82,440, which represents the additional interest paid on the 30-year mortgage.

Greg and Kathy Are Considering Purchasing a Home Requiring an $85,000