Question

Lila owes $33,000 in student loans. If her loan is to be repaid in 6.5 years and the interest rate is charged 6.75 percent, how much will she pay all together?

Answer 1

Answer: $ 47,478.75

Explanation:

Formula: Interest = Principal x rate x time.

As per given: Principal amount = $33,000

Rate of interest = 6.75 percent = 0.0675 [To convert in decimal divide it by 100]

Time = 6.5 years

∴ Interest = (33000)× (0.0675)×(6.5)

=$ 14,478.75

Total amount need to pay = Principal+ Interest

= $ ( 33,000 +14,478.75)

= $ 47,478.75

∴ She will pay all together = $ 47,478.75