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 = PRT
I = 50,000 * 0.05 * 15
I = ?
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?
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To calculate the amount of interest Tonya will end up paying on her loan, we can use the formula for simple interest:
Interest = Principal x Rate x Time
Here, the principal is the amount borrowed, the rate is the interest rate per year, and the time is the duration of the loan in years.
In this case, Tonya borrowed $50,000 for 15 years at an annual interest rate of 5%. Let's substitute these values into the formula:
Interest = $50,000 x 0.05 x 15
To calculate this, we can multiply the three numbers:
Interest = $50,000 x 0.05 x 15 = $37,500
So, Tonya will end up paying $37,500 in interest to the bank.