On January 12, Alex has student loans totalling $14,000. Alex agreed to a $200 per month repayment schedule at which time the annual interest rate was 5.5%. Determine the balance of the loan at the end of January.
A) $13,840.08
B) $13,845.20
C) $13,881.91
D) $13,728.47
E) $13,990.64

Question

Quizplus · Accepted Answer

The correct answer is A because the balance of the loan at the end of January is $13,840.08. This is calculated by taking the original loan amount of $14,000 and subtracting the amount of the first payment, which is $200. The remaining balance is then multiplied by the monthly interest rate of 5.5% / 12 = 0.4583%, which gives us $13,840.08.

On January 12, Alex Has Student Loans Totalling $14,000