Jill Ley took out a loan for $60,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is:

Question

Quizplus · Accepted Answer

To find the total amount Jill has to pay back at the end of the loan, we need to add the principal amount to the interest. The interest on the loan is 6% of $60,000, which is $3,600 per year. Over eight years, the total interest will be $3,600 x 8 = $28,800. So, the total amount Jill has to pay back is $60,000 (the principal) + $28,800 (the interest) = $88,800. Therefore, the correct answer is (C) $88,800.

Jill Ley Took Out a Loan for $60,000 to Pay