Brent House had a mortgage loan in the amount of $87,750. He financed his house for 30 years and had a monthly payment of $725. At the end of 30 years, what will be the total amount of interest paid on the house?

a. $163,500

b. $173,250

c. $152,725

d. $163,150

Option B : $173,250

Explanation:

Total Amount paid after 30 years = $725/month * 12month * 30 years

Total Amount paid after 30 years = $261,000

Interest + Original Cost = Total Amount

Interest - = 261,000-87,750

Interest = 173,250

Option "B" is the correct answer to the following statement

Explanation:

Given:

Mortgage loan amount = $87,750

Number of years = 30 years

Monthly payment = $725

Amount of interest paid = ?

Computation of total amount paid:

Total amount paid = Monthly payment * 12 * Total number of year

Total amount paid = $725 * 12 * 30

Total amount paid = $261,000

Computation of total interest paid:

Total interest paid = Total amount paid - Mortgage loan amount

Total interest paid = $261,000 - $87,750

Total interest paid = $173,250