To find out how much money will be spent in interest alone over the course of the 3% 30-year mortgage, we need to follow these steps:
1. Identify the Principal Amount:
The principal amount of the mortgage is [tex]\(\$150,000\)[/tex].
2. Identify the Monthly Payment Amount:
The monthly payment for the 3% interest rate is [tex]\(\$632\)[/tex].
3. Determine the Total Number of Payments:
Since the mortgage is spread over 30 years and payments are made monthly, the number of payments is:
[tex]\[
30 \text{ years} \times 12 \text{ months/year} = 360 \text{ payments}
\][/tex]
4. Calculate the Total Amount Paid Over the Course of the Mortgage:
To find the total amount paid, multiply the monthly payment by the total number of payments:
[tex]\[
\$632 \times 360 = \$227,520
\][/tex]
5. Calculate the Interest Paid:
The interest paid is the total amount paid minus the principal amount:
[tex]\[
\$227,520 - \$150,000 = \$77,520
\][/tex]
Therefore, the amount of money spent in interest alone over the course of the 3% 30-year mortgage is [tex]\(\$77,520\)[/tex].
