Suppose a $75,500 mortgage is to be amortized at 6.5% interest. Find the total amount of interest that would be paid for a 40 year term. What is the amount of interest for a 40 year mortgage?

Use the formula of the present value of annuity ordinary to find the monthly payment of the loan

The formula is

Pv=pmt [ (1 - (1+r/k) ^ (-kn)) : (r/k) ]

Pv present value 75500

PMT monthly payment?

R interest rate 0.065

K compounded monthly 12

N time 40 years

So we need to solve for pmt

PMT=Pv:[ (1 - (1+r/k) ^ (-kn)) : (r/k) ]

PMT=75,500: ((1 - (1+0.065:12) ^ (

-12*40)) : (0.065:12))

=442.02 (this is the monthly payment)

Now find the amount of interest

Total interest=total paid-present value

Present value=75500

Total paid

442.02*12months*40years

=212,169.6

Total interest=212,169.6-75,500

=136,669.6

The answer is 136,669.6