Question #0d44e

1 Answer
mimi
Dec 12, 2017

#$17,340.07#

Explanation:

COMPOUND INTEREST FORMULA: #A=P(1+r/n)^(nt)#
#A=# amount
#P=# principle amount
#r=# interest rate
#n=# number of times interest compounded per year
#t=# time (years)

20-YEAR LOAN
#A=50,000(1+0.033/12)^(12*20)#
#A=$96,652.03#

14-YEAR LOAN (6 YEARS EARLY)
#A=50,000(1+0.033/12)^(12*14)#
#A=$79,311.96#

DIFFERENCE
#$96,652.03-$79,311.96=$17,340.07#

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