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Liula [17]
3 years ago
14

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

Mathematics
1 answer:
NNADVOKAT [17]3 years ago
6 0

Answer:

$114,000

Step-by-step explanation:

Use formula

I=P\cdot r\cdot t,

where

I = interst

P = principal

r = rate

t = time

First, find the interst for 25 years:

I = unknown

P = $190,000

r = 0.03 (3% as decimal)

t = 25

I_{25}=190,000\cdot 0.03\cdot 25=142,500

Now find the interest for 5 years:

I = unknown

P = $190,000

r = 0.03 (3% as decimal)

t = 5

I_5=190,000\cdot 0.03\cdot 5=28,500

The unpaid balance is

I=I_{25}-I_5=142,500-28,500=114,000

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