Answer:
<u>The correct answer is that Deb will have to pay US$ 6,914.25 at the end of the loan.</u>
Step-by-step explanation:
<u>Loan in US$:</u> 6,300
<u>Term:</u> One Year
<u>Interest rate: </u>9.75% annually
1. Let's calculate how much money Deb will pay in interests for the loan:
Loan * Interest rate * Term
6,300 * 0.0975 * 1
<u>614,25</u>
<u>Deb will have to pay US$ 614,25 in interests for the loan</u>
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
<u>6,914,25</u>
<u>At the end of the loan Deb will have to pay $ 6,914.25</u>