Mortgage payments Principal: $200,000.00 Interest Monthly Rate Payment 3% 4% 5% A. $200,000 C. $186,640 $843 $955 $1074 How much money will be spent in interest alone over the course of the 5% 30-year mortgage described in the table? B. $10,000 D. $386,640

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.