Mortgage payments Principal: $210,000.00 Interest Monthly Rate Payment 3% 3.5% 4.25% A. $210,000 C. $6,300 $885 $943 $1033 How much money will be spent in interest alone over the course of the 3% 30-year mortgage described in the table? B. $108,600 D. $318,600

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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.