Matt borrowed $172,000 to purchase a condo. A 30-year mortgage was obtained with $1087.04 as the monthly payment. Find the total interest paid.


To calculate the total interest paid on a mortgage, we can follow these steps:

1. **Calculate the total amount paid over the life of the loan:**
   - The monthly payment is \$1,087.04.
   - The mortgage term is 30 years, which is equivalent to $30 \times 12 = 360$ months.
   - Total amount paid = $1,087.04 \times 360$.

2. **Subtract the original loan amount to find the total interest paid:**
   - Loan amount = \$172,000.
   - Total interest paid = Total amount paid over the life of the loan - Loan amount.

Now let's do the calculations:

\[
\text{Total amount paid} = 1,087.04 \times 360 = 391,334.40
\]
\[
\text{Total interest paid} = 391,334.40 - 172,000 = 219,334.40
\]

Thus, the total interest paid over the life of the mortgage is **\$219,334.40**.

Would you like more details on how this calculation works or any other related questions?

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Here are 5 related questions to expand your knowledge:
1. How is the monthly payment on a mortgage calculated?
2. What role does the interest rate play in determining total interest paid?
3. What are the benefits of paying off a mortgage early?
4. How do changes in the loan term affect the total interest paid?
5. What is the difference between fixed-rate and adjustable-rate mortgages?

**Tip:** Paying extra on your mortgage principal each month can significantly reduce the total interest paid over time.

Matt borrowed $172,000 to purchase a condo. A 30-year mortgage was obtained with $1087.04 as the monthly payment. Find the total interest paid.

Learn how to calculate the total interest paid on a 30-year mortgage with a loan amount of $172,000 and a monthly payment of $1,087.04. This solution explains the step-by-step calculation of the total interest using basic multiplication and subtraction. Suitable for students in Grades 9-12.

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