Question

In order to finance emergency home repair, you take a simple interest amortized loan of $35,000 at an interest rate of 8.25%. If you make monthly payments for 6 years, how much total interest will you pay?

Answer 1

Solution:- Given in Question-

Loan Amount (Principal Amount)= $35,000

Interest Rate = 8.25%

Time = 6 years

To find Total Interest Will pay-

Interest Amount = Principal Amount * Rate * Time

Interest Amount = $35,000 * 8.25% * 6

Interest Amount = $17,325

Total Amount = Principal + Interest = $35,000 + $17,325 = $52,325.

Total Interest will have to pay is amounting to $17,325.

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