Arizona Real Estate License Practice Exam

To find the total interest paid on the mortgage, you first need to calculate the total amount paid over the life of the loan. The monthly payment is given as $514.31. Since the mortgage is over 30 years, you multiply the monthly payment by the number of payments, which is 30 years multiplied by 12 months per year, giving you a total of 360 payments.

Calculating the total amount paid over the loan’s term:

Total amount paid = Monthly payment × Number of payments

Total amount paid = $514.31 × 360 = $185,953.60

Next, to find the total interest paid, subtract the principal amount (the original loan amount, which is $50,000) from the total amount paid:

Total interest paid = Total amount paid - Principal amount

Total interest paid = $185,953.60 - $50,000 = $135,953.60

Upon reviewing the available options, it is clear that A, which states $75,000, does not accurately represent the correct total interest paid calculation.

The accurate total interest paid in this scenario does not match any of the choices provided, indicating either a miscalculation within the options or that further inquiry may be