Question

Sabrina borrowed $350000 with a 0.5% interest rate from Bank of America to buy a new condo in orange beach how did it take Sabrina to pay if the loan if she ended up pay &26250 interest plz help me

Answer 1

Answer:

t = 2466.67 years (about 2466 years 8 months)

Step-by-step explanation:

Given: Total P+I (A) = $350000, Principal (P) = $26250, Rate (R) = 0.5%

To find: How long did it take Sabrina to pay if the loan if she ended up pay $26250 interest?

Formula: $t = (1/r)(A/P - 1)$

Solution: To calculate your interest rate, you need to know the interest formula I/Pt = r to get your rate

First, converting R percent to r a decimal

r = R/100 = $\frac{0.5 percent}{100}$ = 0.005 per year,

then, solving our equation

t = (1/0.005)((350000/26250) - 1) = 2466.67

t = 2466.67 years

Therefore, it will take Sabrina 2466.67 years (about 2466 years 8 months) to pay off the loan.