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Sagot :
Because Terry had a bankruptcy on her credit report, the additional amount of interest that Terry is paying over the life of the loan is $167,839.720.
What is interest?
Interest is the finance charge for a loan or mortgage.
It is calculated on the principal amount based on the agreed rate and maturity period of the loan.
We can compute the interest using an online finance calculator as below.
Data and Calculations:
Home Price= $100,000
Down Payment = 0%
Loan Term = 30 years
Interest Rate = 11.5%
Monthly Payment: $990.29
Normal monthly payment (without a bankruptcy) = $524.07
Total of 360 Mortgage Payments = $356,504.92 ($990.29 x 30 x 12)
Total of 360 Mortgage Payaments without bankruptcy = $188,665.20 ($524.07 x 30 x 12)
Additional payment in interest = $167,839.720 ($356,504.92 - $188,665.20)
Thus, the additional amount of interest that Terry is paying over the life of the loan is $167,839.720.
Learn more about interest calculations at https://brainly.com/question/25545513
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