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Flashcards in UNIT 14 & 15 Deck (61)
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61

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?
a. $31,190
b. $67,190
c. $98,380
d. $108,000

b. $67,190


$386.64 × 360 months = $139,190
total PI payments - $72,000 LV =
$67,190 total interest