Solve.
-$165,000 is borrowed to buy a house. If the simple interest rate on the 20-year loan is 13.25%, find the total amount paid on the loan.

Question

Quizplus · Accepted Answer

The formula for simple interest is:

I = Prt

where I is the interest, P is the principal, r is the interest rate (as a decimal), and t is the time (in years).

Plugging in the given values, we get:

I = (165,000)(0.1325)(20) = 437,250

So the total amount paid on the loan is:

Total = Principal + Interest = 165,000 + 437,250 = 602,250

Therefore, the best choice is D. Simple interest can be calculated using the formula: I = P*R*T, where I is the interest, P is the principal (amount borrowed), R is the rate of interest per year, and T is the time period.

In this case, P = $165,000, R = 13.25% = 0.1325 (since it's a percentage, we need to divide by 100 to convert it to a decimal), and T = 20 years.

So, I = 165000 * 0.1325 * 20 = $435,375.

This is the total interest paid over 20 years. To find the total amount paid on the loan, we add the interest to the principal:

Total amount paid = Principal + Interest = $165,000 + $435,375 = $600,375.

Therefore, the correct answer is D.

Solve. -$165,000 Is Borrowed to Buy a House. If the Simple