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
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.
