Final amount paid

Question

What is final amount paid on loan after 25 yrs with beginning  Balance $9,415.05 and 2.650% interest?

Answer 1

Principal = $9,415.05 ; length of loan = 25 yrs. ;  interest rate = 2.65% 

 

Amount = Principal ( 1 + r ) ^t   ;  t = number of payments , r is written as decimal

 

        A = $9,415.05 ( 1 + .0265 )²⁵

 

        A = $18,104.91

Answer 2

For simple interest:

 

A = p(1 + rt)

A = 9415.05(1 + 0.0265(25))

A = 9415.05(1.6625)

A = 15,652.52