Question

A registered nurse (RN) pays 5% simple interest on a $175,000 mortgage

for the construction of a house. What is the yearly interest paid on
the mortgage?

Answer 1

I=PRT
I=intrest
p= starting balance/initial balance
r= rate
t=time

i=175,000x.05x1
i=8750
this is the intrest rate the amount given in one year
you need to add this to the first amount since its is simple interest not compound