Question

Jill Ley took out a loan for $60,000 to pay for her child's education. The loan must be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is

Answer 1

88,800 i think is the answer, but i'm not 100% sure.

Answer 2

The total amount Jill has to pay back at the end of the loan is $88800.

Explanation:

Given : Jill Ley took out a loan for $60,000 to pay for her child's education. The loan must be repaid at the end of eight years in one payment with interest of 6%.

To find : The total amount Jill has to pay back at the end of the loan is?

Solution :

First we find the interest in his loan,

`I=P* R* T`

Where, I is the interest

P is the principal P=$60,000

R is the rate R=6%=0.06

T is the time T=8 years

Substituting the values,

`I=60000* 0.06* 8`

`I=\$28,800`

Total amount due in 8 years is

`\$60000 + \$28800 = \$88800`

Therefore, The total amount Jill has to pay back at the end of the loan is $88800.