Question

Mae purchased a home for ₱4,570,000 and obtained a 20-year loan with an annual interest rate of 8.5%, after paying a down payment of 25%. Find the the amount of interest paid on the loan over the 20 years.

Answer 1

Given Information : 

Cost of home = 4,570,000 pesos

Period of loan = 20 years

Annual interest rate = 8.5%

Down payment = 25%

The interest paid on loan is calculated as :

The formula used :

Answer: The total interest paid over 20 year is 3,816,245.29 pesos