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

Question

3 years ago

10

rest by investing her money in a secure government bond, what is the implicit annual interest cost of her home?

2 answers:

Gala2k [10] · Answer 1 · 2022-03-06T17:27:10+03:00

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] · Answer 2 · 2022-03-06T18:44:35+03:00

6 0

Answer:

The answer is: $ 5,000.

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.

The answer is: $ 5,000.