The monthly payments on Jerry and Joanne’s mortgage are $565.60. Their mortgage is $95,000. How much will they pay in interest if they have a 30-year mortgage?

Answer 1

I'm assuming you don't need any time value of money calculations here, so the formula is relatively simple.

Take your monthly amount times 12, times 30. This is the number of payments (360) they make in total.

That will give you $203,616 of total payments. If the mortgage was only $95,000, the additional amount is all interest.

So: $203,616 - $95,000 = $108,616 which is the answer (ignoring time value of money).

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