Question

A bank determines the amount a borrower owes using the formula A=p ( 1+r)t where A is the total amount owed p is the amount borrowed r is the percent interest rate expressed as a decimal, and t is the number of years. To the nearest dollar, what is the total amount of money that would be owed if $150,000 at 6% for 15 years

Answer 1

$679,857.92

Explanation:

The computation of the total amount of money would be owed is shown below

A = P × (1 + r)^t

where

A represents the total money owed

P represent the borrowed amount

r represent the rate of interest

t represents the time period

So,

= $150,000 × (1 + 0.06)^15

= $150,000 × 1.06^15

= $679,857.92