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____ [38]
3 years ago
10

Paul's mom, Gina, owns her home outright, without a mortgage. It is currently worth $100,000. If she could get five percent inte

rest by investing her money in a secure government bond, what is the implicit annual interest cost of her home?
Mathematics
2 answers:
Gala2k [10]3 years ago
7 0
Use the formula   i = p*r*t.

Here, p = $100000, r = 0.05 and t = 1 (year)

The interest would be   i = $100000*0.05*1 = $5000 per year.
spin [16.1K]3 years ago
6 0

Answer:

<u><em>The answer is</em></u>: <u>$ 5,000.</u>

<u></u>

Step-by-step explanation:

The annual interest cost would be the result of multiplying the current value, by 5% and for 1 year, that is: 100,000 x 0.05 x 1 = $ 5000.

<u><em>The answer is</em></u>: <u>$ 5,000.</u>

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