Question
Maggie buys a new home for $150,000. She gets a great loan with a 2.5% interest rate. If she plans on paying it back in 15 years, how much will she pay in total for her home?
Answers
GPT 3.5
First, we need to calculate the total interest Maggie will pay over 15 years. We can use the formula for calculating the total interest on a loan:
Total Interest = Principal x Rate x Time
Total Interest = $150,000 x 0.025 x 15
Total Interest = $150,000 x 0.375
Total Interest = $56,250
Now, we can calculate the total amount Maggie will pay for her home by adding the total interest to the principal:
Total Payment = Principal + Total Interest
Total Payment = $150,000 + $56,250
Total Payment = $206,250
Therefore, Maggie will pay a total of $206,250 for her home over 15 years.
Total Interest = Principal x Rate x Time
Total Interest = $150,000 x 0.025 x 15
Total Interest = $150,000 x 0.375
Total Interest = $56,250
Now, we can calculate the total amount Maggie will pay for her home by adding the total interest to the principal:
Total Payment = Principal + Total Interest
Total Payment = $150,000 + $56,250
Total Payment = $206,250
Therefore, Maggie will pay a total of $206,250 for her home over 15 years.