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Devin owes $26,000 in students loans for college. The interest rate is 8.75% and the loan will be paid off over 15 years. How much will Devin pay altogether?

Respuesta :

Using simple interest, it is found that Devin will pay $60,125 altogether.

The amount paid in simple interest is:

[tex]A = P(1 + rt)[/tex]

In which:

  • P is the principal.
  • r is the interest rate, as a decimal.
  • t is the time, in years.

In this problem:

  • Owes $26,000 in student loans, thus [tex]P = 26000[/tex]
  • Interest rate of 8.75%, thus [tex]r = 0.0875[/tex]
  • Paid off in 15 years, thus [tex]t = 15[/tex].

The amount he will pay is of:

[tex]A = P(1 + rt)[/tex]

[tex]A = 26000[1 + 0.0875(15)][/tex]

[tex]A = 60125[/tex]

Devin will pay $60,125 altogether.

A similar problem is given at https://brainly.com/question/13176347

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