Using the simple interest formula, how much interest is charged on a 30 year $100,000 house loan at 6%?
Interest = 100,000(.06)(30) = 180,000
(This is a completely meaningless answer. Nobody would charge simple interest for such a period of time.
The formula assumes that there is always 100,000 owing, but aren't there payments made in a "house loan", generally referred to a mortgage ? )