Max is purchasing a home!  He has agreed to 3.5% interest over 30 years; his mortgage is $91000.  If he pays $481 a month (no more, no less) each month for 30 years, how much will Max pay **in interest** over the lifetime of the mortgage?

To calculate how much Max will pay **in interest** over the lifetime of the mortgage, let's break down the problem.

1. **Initial Loan Information:**
   - Loan amount (principal): $ P = 91,000 $ dollars
   - Interest rate: $ 3.5\% $ per year
   - Loan term: $ 30 $ years
   - Monthly payment: $ 481 $ dollars

2. **Total Number of Payments:**
   - Since Max will pay monthly for 30 years:
   \[
   \text{Total payments} = 30 \times 12 = 360 \text{ months}
   \]

3. **Total Amount Paid Over the Loan Term:**
   - Max pays $ 481 $ dollars per month for 360 months:
   \[
   \text{Total amount paid} = 481 \times 360 = 173,160 \text{ dollars}
   \]

4. **Interest Paid Over the Loan Term:**
   - To find the total interest, subtract the principal from the total amount paid:
   \[
   \text{Total interest paid} = 173,160 - 91,000 = 82,160 \text{ dollars}
   \]

Thus, Max will pay **$82,160 in interest** over the lifetime of the mortgage.

Would you like more details on how this was calculated, or do you have any questions?

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Here are 5 related questions to deepen understanding:

1. How would the interest paid change if Max paid more than $481 per month?
2. What would happen if the interest rate was 4% instead of 3.5%?
3. How can Max reduce the total interest paid over the life of the loan?
4. How would the loan terms change if Max wanted to pay it off in 20 years instead of 30?
5. What portion of the $481 monthly payment goes to interest versus principal in the first year?

**Tip:** Extra payments towards the principal can significantly reduce the total interest paid over the life of a mortgage!

Max is purchasing a home! He has agreed to 3.5% interest over 30 years; his mortgage is $91,000. If he pays $481 a month (no more, no less) each month for 30 years, how much will Max pay in interest over the lifetime of the mortgage?

Learn how to calculate the total interest paid for a $91,000 mortgage at 3.5% interest over 30 years. Discover the formulas and steps to determine the total payments and interest, suitable for high school students in Grades 10-12.

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