Final answer:
Loan D, which is a 15-year loan with an interest rate of 8%, will have Lilith pay the highest amount in interest, totaling $9,360 over the life of the loan.
Step-by-step explanation:
To determine which loan option will have Lilith pay the most amount in interest, we need to calculate the total interest paid for each loan option. We'll assume simple interest for the sake of this illustration, though in reality, loans often use compound interest, which can result in higher total interest payments over the life of the loan.
Loan A: $7,800 at a 5% interest rate for 5 years.
Total interest = Principal × Rate × Time = $7,800 × 0.05 × 5 = $1,950.
Loan B: $7,800 at a 6% interest rate for 7 years.
Total interest = Principal × Rate × Time = $7,800 × 0.06 × 7 = $3,276.
Loan C: $7,800 at a 7% interest rate for 10 years.
Total interest = Principal × Rate × Time = $7,800 × 0.07 × 10 = $5,460.
Loan D: $7,800 at an 8% interest rate for 15 years.
Total interest = Principal × Rate × Time = $7,800 × 0.08 × 15 = $9,360.
As we can see from the calculations, Loan D, with a 15-year term and an 8% interest rate, will have Lilith pay the most amount in total interest.