Answer:
The Interest that Beth paid for 12 years of loan is $77,265.65
Step-by-step explanation:
Given as :
The loan principal = p = $35,000
The loan time period = t = 12 years
The rate of interest applied = r = 10.2%
Let The Amount after 12 years = $A
Let The Interest that Beth paid = $I
Now, From Compound Interest method
Amount = Principal × [tex](1+\dfrac{\textrm rate}{100})^{\textrm time}[/tex]
Or, A = p × [tex](1+\dfrac{\textrm r}{100})^{\textrm t}[/tex]
Or, A = $35,000 × [tex](1+\dfrac{\textrm 10.2}{100})^{\textrm 12}[/tex]
Or, A = $35,000 × [tex](1.102)^{\textrm 12}[/tex]
Or, A = $35,000 × 3.20759
Or, A = $112,265.65
So, The Amount after 12 years = A = $112,265.65
Again,
Interest = Amount - principal
Or, I = A - p
Or, I = $112,265.65 - $35,000
Or, I = $77,265.65
So,The Interest that Beth paid = I = $77,265.65
Hence,The Interest that Beth paid for 12 years of loan is $77,265.65 Answer
