If you purchase a house and borrow 200000 with a 30year loan

If you purchase a house and borrow $200,000 with a 30-year loan, at 6% interest from Wells Fargo. Your monthly payments are $1,200 (not counting other costs such as property taxes, insurance, etc.).   Every month for 30 years you will pay $1,200. What can you say about the amount of interest and the amount of principal over the life of the loan? Over the life of the loan, how much will you pay Wells Fargo?

Solution

Solution:

Total payment = 1,200*30*12 = $432,000

Interest payment = total payment - principal amount

= 432,000-200,000 = $232,000