## Interest

Interest can be defined as the charge for the benefit of borrowing funds normally expressed as an Annual Percentage Rate yearly rate (APR).

The two main types of interests are Simple Interest and Compound Interest.

## Answer and Explanation:

Principal (P) = 165000

Rate (R) = 7.5% =0.075/12=0.00625

Time Period (N) = 30*12 = 360

EMI = {eq}\frac{P*R*(1+R)^N}{(1+R)^N-1} {/eq}

= {eq}\frac{165000*0.00625*(1+0.00625)^{360}}{(1+0.00625)^{360}-1} {/eq}

= $1154 (Rounded off ) Total Payment = 1154*360= 415440 Total Interest = 415440-165000=$250,440