Respuesta :
$32,764 interest expense can be saved by prepaying
Mortgage amount = $115,000
Annual Interest rate = 7%
Term of mortgage = 30 years
Additional monthly payment = $50
Initial monthly payment = $765
New monthly payment = 765 + 50 = $815
New term (months) = 298
Total of payments (original) = $275,435
Total of payments (new) = $242,671
An interest expense is a cost incurred by a business for borrowing money. On the income statement, interest expense is a non-operating expense. It denotes the interest payable on all borrowings, including bonds, loans, convertible debt, and lines of credit. It is calculated by multiplying the interest rate by the outstanding principal amount of the debt. On the income statement, interest expense represents interest accrued during the period covered by the financial statements, not interest paid during that period.
Mortgage interest is the single-largest category of interest expense for most people over their lifetimes, as it can total tens of thousands of dollars over the course of a mortgage, as illustrated by online calculators.
For more information on Interest expense, visit :
https://brainly.com/question/14185533
#SPJ4
