Question

Mr. and Mrs. Rainer took out a $240,000 loan to purchase their home. If the interest rate on the loan is 1.2% compounded bimonthly, how much interest will they have paid after 30 years?

Answer 1

Compound equation: A=P(1+ r/n)^(nt)
Bimonthly means once every 2 months, which is 6 times a year (this can be confused with semi-monthly which is 24 times a year)
1.2% is 0.012 in decimal form
A=240,000(1+0.012/6)^(6*30)
Working out the equation
A=$343,875.41