How much interest will you pay on a loan of $15 500 if you are paying the loan off in 9 months? Your loan rate is 7.125%.
A) $828.28
B) $838.28
C) $848.28
D) $818.28
E) $858.28

Question

Quizplus · Accepted Answer

To calculate the interest paid on a loan, you can use the formula: Interest = Principal x Rate x Time. Here, the principal is $15,500, the rate is 7.125% (or 0.07125 when converted to a decimal), and the time is 9/12 year (since interest rates are annual and there are 9 months in the loan term). So, Interest = $15,500 x 0.07125 x (9/12) = $828.28.

How Much Interest Will You Pay on a Loan of $15