Answer:
The Amount paid after 8 years is $72611.76
Step-by-step explanation:
Given as :
The principal mortgage = p = $31,200
The rate of interest = r = 10.7% compounded quarterly
The time period of mortgage = t = 8 years
Let The Amount paid after 8 years = $A
Now, According to question
From Compounded Interest method
Amount = Principal × [tex](1+\dfrac{\textrm rate}{4\times 100})^{\textrm 4\times time}[/tex]
Or, A = p × [tex](1+\dfrac{\textrm r}{4\times 100})^{\textrm 4\times t}[/tex]
Or, A = $31,200 × [tex](1+\dfrac{\textrm 10.7}{4\times 100})^{\textrm 4\times 8}[/tex]
Or, A = $31,200 × [tex](1.02675)^{32}[/tex]
Or, A = $31,200 × 2.3273
∴ A = $72611.76
So, The Amount paid after 8 years = A = $72611.76
Hence, The Amount paid after 8 years is $72611.76 Answer
