Question

Devin owes $26,000 in students loans for college. The interest rate is 8.75% and the loan will be paid off over 15 years. How much will Devin pay altogether?

Answer 1

Using simple interest, it is found that Devin will pay $60,125 altogether.

The amount paid in simple interest is:

$A = P(1 + rt)$

In which:

• P is the principal.
• r is the interest rate, as a decimal.
• t is the time, in years.

In this problem:

• Owes $26,000 in student loans, thus $P = 26000$
• Interest rate of 8.75%, thus $r = 0.0875$
• Paid off in 15 years, thus $t = 15$.

The amount he will pay is of:

$A = P(1 + rt)$

$A = 26000[1 + 0.0875(15)]$

$A = 60125$

Devin will pay $60,125 altogether.

A similar problem is given at brainly.com/question/13176347