Question

Find the unpaid balance on the debt after 5 years of monthly payments on $190,000 at 3% for 25 years

Answer 1

the unpaid balance after the 5 years will be 125400.

Explanation:

Given,

Principal amount, P = 190,000

rate,r = 3%

total time,t = 25 years

So, the total interest after 25 years will be,

`I\ =\ (P* r* t)/(100)`

`=\ (190,000* 3* 25)/(100)`

= 142500

amount will be paid in 3 years with same interest rate can be given by

`I_p\ =\ (P* r* t)/(100)`

`=\ (190,000* 3* 3)/(100)`

= 17100

So, the amount of interest to be paid= 142500 - 17100

= 125400

so, the unpaid amount of interest after the 5 years will be 125400.