Question

Travis took out a six-year loan with a principal of $15,000. He made monthly payments of $225 for the entire period, at which point the loan was paid off. How much did Travis pay in interest? a. $1,200 b. $1,350 c. $800 d. $0 Please select the best answer from the choices provided A B C D.

Answer 1

A

Explanation:

edge

Answer 2

Interest = $1200

Explanation:

Time = 6 years

= 6 × 12 = 72 months

Monthly payment = $225

Total amount paid = Monthly payment × no. of months

= 225 × 72 = $16200

Now, using the formula :

Interest = Amount - Principal

= 16200 - 15000

= $1200

Hence, the interest paid by Travis = $1200