Tonya took out a loan to help pay for her house. She borrowed $50,000 for 15 years at a yearly simple interest rate of 5%. How much interest will she end up paying the bank?
$37,500
$7,500
$375,000
$375

Question

Tonya took out a loan to help pay for her house. She borrowed $50,000 for 15 years at a yearly simple interest rate of 5%. How much interest will she end up paying the bank?
$37,500
$7,500
$375,000
$375

cutestgirlaround · Answer

@daisyduck04

cutestgirlaround · Answer

@sotoslugger

r.hamza17 · Answer

Okay as you are given with the principal amount P=$50000, time period n=15 and the interest rate is r=5%, use the formula below to find the answer
A=P(1+r)^n
A=50000(1+0.05)^15
Now just solve it

r.hamza17 · Answer

And than you an subtract the maturity amount from the principal amount to get the interset she have paid. 
I=A-P