Question

Beth took out a 12 year loan for 35,000 for a pool. If the interest rate is 10.2%,how much will she play in interest

Answer 1

Answer:

The Interest that Beth paid for 12 years of loan is $77,265.65  

Step-by-step explanation:

Given as :

The loan principal = p = $35,000

The loan time period = t = 12 years

The rate of interest applied = r = 10.2%

Let The Amount after 12 years = $A

Let The Interest that Beth paid = $I

Now, From Compound Interest method

Amount = Principal × $(1+\dfrac{\textrm rate}{100})^{\textrm time}$

Or, A = p × $(1+\dfrac{\textrm r}{100})^{\textrm t}$

Or, A = $35,000 × $(1+\dfrac{\textrm 10.2}{100})^{\textrm 12}$

Or, A = $35,000 × $(1.102)^{\textrm 12}$

Or, A = $35,000 × 3.20759

Or, A = $112,265.65

So, The Amount after 12 years = A = $112,265.65

Again,

Interest = Amount - principal

Or, I = A - p

Or, I = $112,265.65 - $35,000

Or, I = $77,265.65

So,The Interest that Beth paid = I = $77,265.65

Hence,The Interest that Beth paid for 12 years of loan is $77,265.65  Answer