To determine the amount of money spent on interest alone over the course of a 30-year mortgage with a 4% interest rate and a monthly payment of \[tex]$955, follow these steps:
1. Find the total amount paid over the mortgage term:
- The term of the mortgage is 30 years.
- There are 12 months in a year.
- The monthly payment is \$[/tex]955.
- Multiply the monthly payment by the number of months in the mortgage term:
[tex]\[
\text{Total Amount Paid} = 955 \times 30 \times 12 = 343,800
\][/tex]
2. Subtract the principal amount from the total amount paid to find the interest paid:
- The principal amount is \[tex]$200,000.
- Subtract the principal from the total amount paid:
\[
\text{Interest Paid} = 343,800 - 200,000 = 143,800
\]
Therefore, the amount of money spent on interest alone over the course of the 30-year mortgage with a 4% interest rate is \$[/tex]143,800.
