First, we need to use the proper equation:
30(0.05475(543000))
We multiply inwards (you may want to use a calculator)
1.6425(543000)
Multiply again:
891877.5
Andrew will pay $891,877.50 in interest and $1,434,877.50 in total.
Answer:
Andrew will pay $891877.5 as interest.
Step-by-step explanation:
Andrew is financing a condominium for $543000 for 30 years with a fixed rate of 5.475% per year. We have to calculate the interest he will pay over the life of his loan.
As we know the formula of simple interest I of a principal amount P for the period of T years with a rate of interest R%
I = (P×T×R)/100
Here P= $543000
R=5.475% years
T = 30 tears
So I = (543000×30×5.475)/100
I = (5430×30×5.475) = $891877.5
So the interest paid by Andrew will be $891877.5
