Question

The Henley's took out a new home loan for $195,000 at a simple interest rate of 4.3%. How muchwill they pay in interest after 30 years?

Answer 1

The simple interest, I, is given by the formula;

`\begin{gathered} I=(PRT)/(100) \\ \text{where P represents the Principal} \\ R\text{ represents Rate} \\ T\text{ represents Time} \end{gathered}`

From the question, we are provided with the following;

P= $195,000, R= 4.3%, T=30 years

Thus,

`\begin{gathered} I=(195,000*4.3*30)/(100) \\ I=(25155000)/(100) \\ I=251,550 \end{gathered}`

Hence, the interest after 30 years is $ 251,550