Tonya took out a loan to help pay for her house. She borrowed $50,000 for 15 years at a yearly simple interest rate of 5%. How much interest will she end up paying the bank?
I = Po*r*t = 50,000*0.05*15 = $37,500.
Don put 4000 in a saving account with an interest rate of 4% for three years.if the interest is compounded annually,how much money will he have at the end of the three years?
To calculate the amount of interest Tonya will pay the bank, we need to use the formula for simple interest:
Interest = Principal × Rate × Time
Here, the principal is the amount borrowed, the rate is the interest rate, and the time is the loan period in years.
In this case:
Principal = $50,000
Rate = 5% (expressed as a decimal, 0.05)
Time = 15 years
Substituting these values into the formula:
Interest = $50,000 × 0.05 × 15
Calculating this expression will give us the total amount of interest Tonya will pay.