Question

Devin owes $26,000 in students loans for college. The interest rate is 8.75% and the loan will be paid off over 15 years. How much will Devin pay altogether?$60,125$72,123$3,412,500$8,125

Answer 1

$60,125

Step-by-step explanation:

We'll use the below formula to determine how much Devin will pay altogether;

`A=P(1+rt)`

where A = final amount = ?

P = principal amount = $2600

r = interest rate in decimal = 8.75/100 = 0.0875

t = time in years = 15 years

Substituting the given values into our formula and solving for A, we'll have;

`\begin{gathered} A=26000(1+0.0875*15) \\ =26000(2.3125) \\ =60,125 \end{gathered}`

Therefore, Devin will pay $60,125 altogether.