Question

Find the unpaid balance on the debt after 5 years of monthly payments on $190,000 at 3% for 25 years

Answer 1

Answer:

the unpaid balance after the 5 years will be 125400.

Step-by-step explanation:

Given,

Principal amount, P = 190,000

rate,r = 3%

total time,t = 25 years

So, the total interest after 25 years will be,

$I\ =\ \dfrac{P\times r\times t}{100}$

   $=\ \dfrac{190,000\times 3\times 25}{100}$

    = 142500

amount will be paid in 3 years with same interest rate can be given by

$I_p\ =\ \dfrac{P\times r\times t}{100}$

       $=\ \dfrac{190,000\times 3\times 3}{100}$

       = 17100

So, the amount of interest to be paid= 142500 - 17100

                                                             = 125400

so, the unpaid amount of interest after the 5 years will be 125400.