Respuesta :
Answer:
$608170.12
Step-by-step explanation:
Wilson took out a 30-year loan for $135,000 at an APR of 6.5%, compounded monthly.
Now, if he repays the loan 6 years early then the interest of the loan will be calculated for (30 - 6) = 24 years.
Now, the monthly interest rate is [tex]\frac{6.5}{12} = 0.542\%[/tex].
Again, within the period of 24 years, the loan will be compounded (24 × 12) = 288 times.
Therefore, using the formula of compound interest the approximate amount of total cost of his loan will be
= [tex]135000(1 + \frac{0.524}{100} )^{288}[/tex]
= $608170.12 (Answer)
