Question

Tonya took out A loan to pay her house she borro A loan to pay her house she borrow $60,000 for 15 years At a year simple interest rate of 5% how much interest will she end up paying the bank

Answer 1

Tonya will pay the amount $45,000 as an interest to the bank.

Explanation:

Principal Value(P) = $60,000

Rate of interest(R) = 5%

Time(T) = 15 years

Simple Interest =
`(P * R* T)/(100)`

⇒ S.I. =
`(60,000 * 5 * 15)/(100)`

= $45,000

So, Tonya will pay the amount $45,000 as an interest to the bank.