5. What is the total interest paid over the life of a $100,000 30-year FRM with an 8% interest rate?

Question

Question

business finance

Answer 1

Answer #1

Calculating Annual Payment on Loan,

Using TVM Calculation,

PMT = [PV = 100,000, FV = 0, N = 30, I = 0.08]

PMT = $8,882.74

Total Interest Paid = 30(8,882.74) - 100,000

Total Interest Paid = $166,482.20

Answer 2

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