Final answer:
The total amount Lisa owes after one year on a $7500 loan at an interest rate of 8% compounded annually is $8100. This is calculated using the formula for compound interest with no payments made during the first year.
Step-by-step explanation:
The total amount Lisa owes after one year on a $7500 loan with an interest rate of 8% compounded annually, with no payments made during the year, is calculated using the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
-
- A is the amount of money accumulated after n years, including interest.
-
- P is the principal amount ($7500).
-
- r is the annual interest rate (decimal).
-
- n is the number of times that interest is compounded per year.
-
- t is the time the money is invested for, in years.
Since interest is compounded annually (n=1) and the time period is one year (t=1), the formula simplifies to:
A = 7500(1 + 0.08/1)^(1*1) = 7500(1.08) = $8100
Therefore, the correct answer is (b) $8100.