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 have 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:

where

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

Now,

Hence, the interest is $103968.11.