To determine how much money will be spent in interest alone over the course of a 30-year mortgage at an interest rate of 3.5% with a monthly payment of [tex]$808, we will follow these steps:
1. Identify the principal amount, monthly payment, interest rate, and mortgage duration.
- Principal amount: $[/tex]180,000
- Monthly payment: [tex]$808
- Annual interest rate: 3.5%
- Mortgage duration: 30 years
2. Calculate the total amount paid over the entire duration of the mortgage.
- Mortgage duration in months: \(30 \text{ years} \times 12 \text{ months/year} = 360 \text{ months}\)
- Total amount paid: \(\text{Monthly payment} \times \text{Number of months}\)
- \[ \text{Total amount paid} = \$[/tex]808 \times 360 = \[tex]$290,880 \]
3. Determine the total interest paid over the course of the mortgage.
- Total interest paid: \(\text{Total amount paid} - \text{Principal amount}\)
- \[ \text{Total interest paid} = \$[/tex]290,880 - \[tex]$180,000 = \$[/tex]110,880 \]
Thus, the amount of money spent in interest alone over the course of the 30-year mortgage at an interest rate of 3.5% is $110,880.
