Question

The Henley's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate

compounded annually,how much interest will they have paid after 30 years?

Answer 1

The interest he needs to pay $494546.986 after 30 years.

Explanation:

Given,

Principal (P) = $195000

Rate of interest (R) = 4.3%

Time (T) = 30 years

To find the amount he needs to pay after 30 years.

Formula

A = P
`(1+(R)/(100)) ^(T)`

Now,

Putting,

P = 195000, T = 30 and R = 4.3 we get,

A = 195000
`(1+(4.3)/(100) )^(30)`

= 689546.986

So,

The interest he needs to pay = $(689546.986-195000)

= $494546.986