Question

Brenda took a student loan for $24,000. She is paying 2.25 percent on an eight-year loan and has paid off $18,000 so far.

How much does Brenda have left to pay?

Answer 1

Brenda have to pay 10320 usd more for the settlement of the loan.

Explanation:

Here Brenda took the loan for the time period of 8 years.

Total loan amount she took (P) = USD 24000.

Here she paying 2.25 percent per year on the principle amount as the interest.

so, here Principle , P = 24000 usd

rate of interest ,r = 2.25%

time , t = 8 years

So, the total interest she have to pay is , I =
`(Prt)/(100)`

=
`(24000 * 2.25 * 8)/(100)`

= 4320

Therefore, total payable amount after 8 years is equal to the principle together with the total interest.

i.e. A= P+I

= 24000+4320

= 28320.

So, Brenda have to pay 28320 usd.

Now, he paid 18000 usd.

So, the remaining amount to be paid = (28320 - 18000) usd

= 10320 usd

So, Brenda have to pay 10320 usd more for the settlement of the loan .