Interest paid after 30 years is $494,546.99.
Solution:
Principal (P) = $195,000
Interest rate (r) = 4.3%
Time (t) = 30 years
n = number of times interest calculated per year
n = 1
Compound interest formula:
[tex]$A=P\left(1+\frac{r}{n}\right)^{n t}[/tex]
where A is the final amount
[tex]$A=195000\left(1+\frac{4.3\%}{1}\right)^{1\times 30}[/tex]
[tex]$A=195000\left(1+\frac{4.3}{100}\right)^{30}[/tex]
[tex]$A=195000\left(\frac{100+4.3}{100}\right)^{30}[/tex]
[tex]$A=195000\left(\frac{104.3}{100}\right)^{30}[/tex]
A = 689546.99
Interest = Amount - Principal
= 689546.99 - 195000
= 494546.99
Interest paid after 30 years is $494,546.99.
