Answer:
$ 305,298
Step-by-step explanation:
The formula to use would be:
[tex]F=P(1+r)^t[/tex]
Where F is the future amount (including principal and interest)
P is the amount taken [94,000]
r is the rate of interest per year [7.5% = 0.075]
t is the time in years [here, 20]
Lets put the info into formula and solve for F:
[tex]F=P(1+r)^t\\F=94,000(1+0.075)^{20}\\F=94,000(1.075)^{20}\\F=399,298[/tex]
So, the interest paid is:
399,298 - 94,000 = $ 305,298
