Mortgage payments Principal: $180,000.00 Interest Monthly Rate Payment 3.5% 5% 6% A. $347,760 C. $180,000 $808 $966 $1079 How much money will be spent in interest alone over the course of the 5% 30-year mortgage described in the table? B. $167,760 D. $9,000

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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.