On September 15, Miguel has student loans totalling $25,000. Miguel agreed to a $350 per month repayment schedule at which time the annual interest rate was 7.45%. Determine the balance of the loan at the end of November.
A) $25,666.55
B) $25,555.44
C) $24,444.55
D) $24,333.22
E) $24,666,33

Question

Quizplus · Accepted Answer

First, we need to calculate the monthly interest rate:

7.45% / 12 = 0.6208%

Then, we can calculate the remaining balance at the end of October:

Balance at the start of October = $25,000 
Interest for October = $25,000 x 0.6208% = $155.20 
Payment for November = $350

Remaining balance at the end of October = $25,000 + $155.20 - $350 = $24,805.20

Next, we can calculate the remaining balance at the end of November:

Interest for November = $24,805.20 x 0.6208% = $154.08 
Payment for November = $350

Remaining balance at the end of November = $24,805.20 + $154.08 - $350 = $24,609.28

Therefore, the closest answer is D) $24,333.22.

On September 15, Miguel Has Student Loans Totalling $25,000