Question #0d44e

1 Answer
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