Answer:
future payment is $77056.92
total interest is paid after 45 year is $23056.42
Step-by-step explanation:
Given data
payment (P) = $100
No of installment (n) = 12
rate of interest ( r ) = 1.5 % i.e. = 0.015
time period (t) = 45 years
to find out
future payment and interest after 45 year
solution
we know future payment formula i.e. given below
future payment = payment × ![(1+\frac{r}{n})^{nt} - 1) / (r/n)](https://tex.z-dn.net/?f=%281%2B%5Cfrac%7Br%7D%7Bn%7D%29%5E%7Bnt%7D%20-%201%29%20%2F%20%28r%2Fn%29)
now put all these value in equation
future payment = $ 100 ×
future payment = $ 77056.92
payment paid in 45 year @ $100 total money is paid is 45 × 12 × $100 i.e. = $54000
total interest = future payment - money paid
total interest = $77056.42 - $54000
total interest = $23056.42