Problema Solution
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?
Answer provided by our tutors
P = $50,000 the principle
t = 15 years the time
r = 0.05 or 5% the annual rate
I = the interest
I = Prt
I = 50000*0.05*15
I = $37,500
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Tonya will end up paying interest of $37,500.