Jane bought a house that costed the $185,000. the interest rate for Chase bank to finance the home 4.3 percent.after 30 years exactly how much would Jane have paid for the house
Accepted Solution
A:
To solve this we are going to use the formula for simple interest: [tex]A=P(1+rt)[/tex] where [tex]A[/tex] is the final amount [tex]P[/tex] is the initial amount [tex]r[/tex] is the interest rate in decimal form [tex]t[/tex] is the time in years
We know for our problem that [tex]P=185000[/tex] and [tex]t=30[/tex]. To convert the rate to decimal form, we are going to divide it by 100% [tex]r= \frac{4.3}{100} [/tex] [tex]r=0.043[/tex] Now that we have all we need, lets replace the values in our formula to find [tex]A[/tex]: [tex]A=P(1+rt)[/tex] [tex]A=185000[1+(0.043)(30)][/tex] [tex]A=423650[/tex]
We can conclude that after 30 years Jane will have paid $423,650 for her home.