Answer:
Okay, let's think through this step-by-step:
• Janelle Monae obtained a $3,500 loan at 8.5% interest for 1 year.
• 8.5% interest for 1 year = 8.5% of $3,500 = $297.50 in interest
• The loan amount ($3,500) plus interest ($297.50) = $3,797.50 total paid back
•Monthly payments = $3,797.50 / 12 months = $285.55
• So the interest amount in the first payment is $297.50 (calculated above as 8.5% of the $3,500 loan amount)
The choices do not match this:
A. $297.50 - This is the correct choice. This is the interest amount paid over the full loan.
B. $291.67 - This is too low. Calculated interest over 1 year at 8.5% is $297.50.
C. $24.79 - This is way too low. The interest amount due is $297.50 per the working.
D. $35.00 - This is also too low and does not make sense based on the loan details provided.
In summary, to find the interest in just the first payment, we calculate:
Interest over full loan ($297.50) / Number of payments (12) = $24.79
So the interest amount in just the first monthly payment is $24.79.
But the total interest paid over the life of the loan (1 year) is $297.50.
Does this help explain the steps and reasoning? Let me know if any part of the working or explanation is unclear. I can also provide additional examples if needed.
Let me know if you have any other questions!
Explanation: