Question

mr. and mrs. Rainer took out a $240,000 loan to purchase their home. If the interest rate on the loan is 1.2% compounded bimonthly, how much interest will they paid after 30 years?

Answer 1

Answer:

$103968.11.

Step-by-step explanation:

Given information:

Principal amount = $240,000

Rate of interest = 1.2% = 0.012

Number of years = 30

Number of times in an year = 24

Formula for amount:

$A=P(1+\dfrac{r}{n})^{nt}$

where,

P is principal, r is rate of interest, t is number of years, n is number of times interest compounded in a year.

$A=240000(1+\dfrac{0.012}{24})^{24(30)}$

$A=240000(1.0005)^{720}$

$A=343968.11$

Now,

$Interest=A-P$

$Interest=343968.11-240000$

$Interest=103968.11$

Hence, the interest is $103968.11.