Question

Lex borrowed $2500 in student loans. The interest rate was 3.5%. How much money does he owe after 9 months? Find the interest and the total due.

a) Interest: $0, Total Due: $2500
b) Interest: $262.50, Total Due: $2762.50
c) Interest: $787.50, Total Due: $3287.50
d) Interest: $375.00, Total Due: $2875.00

Answer 1

To find the interest and total due on a loan, use the formula Interest = Principal Amount * Interest Rate * Time, and Total Due = Principal Amount + Interest. For Lex's loan of $2500 with an interest rate of 3.5% for 9 months, the interest is $65.63 and the total due is $2565.63.

Step-by-step explanation:

To find the interest and the total due on a loan, we can use the formula:

Interest = Principal Amount * Interest Rate * Time

Total Due = Principal Amount + Interest

Using this formula, we can calculate the interest and total due for Lex's loan:

Interest = $2500 * 0.035 * 9/12 = $65.63

Total Due = $2500 + $65.63 = $2565.63

Therefore, the correct answer is a) Interest: $65.63, Total Due: $2565.63