Answer:
$114,000
Step-by-step explanation:
Use formula
[tex]I=P\cdot r\cdot t,[/tex]
where
I = interst
P = principal
r = rate
t = time
First, find the interst for 25 years:
I = unknown
P = $190,000
r = 0.03 (3% as decimal)
t = 25
[tex]I_{25}=190,000\cdot 0.03\cdot 25=142,500[/tex]
Now find the interest for 5 years:
I = unknown
P = $190,000
r = 0.03 (3% as decimal)
t = 5
[tex]I_5=190,000\cdot 0.03\cdot 5=28,500[/tex]
The unpaid balance is
[tex]I=I_{25}-I_5=142,500-28,500=114,000[/tex]
