Question

Deb borrows 6,300 for one year at 9.75% how much will she pay back at the end of the loan term

Answer 1

Answer:

The correct answer is that Deb will have to pay US$ 6,914.25 at the end of the loan.

Step-by-step explanation:

Loan in US$: 6,300

Term: One Year

Interest rate: 9.75% annually

1. Let's calculate how much money Deb will pay in interests for the loan:

Loan * Interest rate * Term

6,300 * 0.0975 * 1

614,25

Deb will have to pay US$ 614,25 in interests for the loan

2. Let's calculate how much money Deb will pay back at the end of the loan term

Loan in US$ + Interests in US$

6,300 + 614,25

6,914,25

At the end of the loan Deb will have to pay $ 6,914.25