To calculate the total amount of the loan after 5 years with an annual interest rate of 4.3%, we use the formula for compound interest which is:

A = P(1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case:
P = $195,000
r = 4.3/100 = 0.043 (you divide by 100 to convert the percentage into a decimal)
n = 1 (since the interest is compounded annually)
t = 5 years

Substituting these values into the formula, we get:

A = $195,000(1 + 0.043/1)^(1*5)

Solving this equation will give us the total amount of the loan after 5 years.

Question

To calculate the total amount of the loan after 5 years with an annual interest rate of 4.3%, we use the formula for compound interest which is:

A = P(1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case:
P = $195,000
r = 4.3/100 = 0.043 (you divide by 100 to convert the percentage into a decimal)
n = 1 (since the interest is compounded annually)
t = 5 years

Substituting these values into the formula, we get:

A = $195,000(1 + 0.043/1)^(1*5)

Solving this equation will give us the total amount of the loan after 5 years.

Knowee AI · Accepted Answer

To calculate the total amount of the loan after 5 years with an annual interest rate of 4.3%, we use the formula for compound interest which is:

A = P(1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case:
P = $195,000
r = 4.3/100 = 0.043 (you divide by 100 to convert the percentage into a decimal)
n = 1 (since the interest is compounded annually)
t = 5 years

Substituting these values into the formula, we get:

A = $195,000(1 + 0.043/1)^(1*5)

Solving this equation will give us the total amount of the loan after 5 years.

The Henley's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much will the loan be after 5 years?

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