Question

Steph took out a simple interest loan that charges 8.5% interest annually. If her original loan amount was for $30,000 and she is paying off the loan over 20 years, how much will she pay altogether? .

Answer 1

$81,000

Explanation:

A = Final Payment = ?

P = Principal Amount = $30,000

r = Interest Rate = 8.5%

t = Time = 20 Years

A = P(1 + rt)

A = 30,000(1 + 0.085 x 20)

A = 30,000 + 51000

A = $81,000

Hence, Steph will pay $81,000 altogether.