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A Couple Who Wants to Purchase a Home with a Price

Question 8

Multiple Choice

A couple who wants to purchase a home with a price of $325,000 has $100,000 for a down payment. If they can get a 25-year mortgage at 8% per year, paid on the unpaid balance, what is the total amount they will pay
Before they own the house outright? How much interest will they pay over the life of the loan?


A) $620,977; $295,977
B) $752,520; $427,520
C) $852,520; $527,520
D) $520,977; $195,977

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