Answer:
Step-by-step explanation:
In the real world amortization mortgage loans have equal monthly installments paid for the life of the loan.
The monthly installments are found by
[tex]I=P\left(\frac{r-1}{r^n-1}+(r-1)\right)\\ \\ r=1+(r/12),\ n=12(30)=360\\ \\ I=550000\left(\frac{.00167}{1.00167^{360}-1}+.00167\right)\\ \\ I=\$ 2032.91\\ \\ \text{If we subtract the total paid over thirty years minus the principal we get the total interest paid.}\\ \\ 360(2032.91)-550000=$181846.56[/tex]
