Asked by
Anisha Sandy
on Dec 15, 2024
Verified
On September 12, Claire had $8,000 in student loans outstanding. She agreed to $125 per month payments to repay these loans. From September 12 to October 8, the simple interest rates were 5.0%, but decreased to 4.5% thereafter. Calculate the balance outstanding on October 31.
A) $7,800.76
B) $7,808.96
C) $7,819.27
D) $7,826.34
E) $7,855.68
Student Loans
Loans taken by students to cover higher education expenses, expected to be repaid with interest.
Simple Interest Rates
Interest calculated only on the principal amount of a loan or deposit, without compounding over time.
Outstanding Balance
The amount of money owed on a loan, credit card, or any other debt that remains unpaid.
- Absorb the core idea and process of determining simple interest.
- Acquire knowledge on the repercussions of interest rate adjustments on financial lending and investment decisions.
- Analyze how repaying loans affects the residual balance in scenarios involving simple interest.
Verified Answer
KJ
Learning Objectives
- Absorb the core idea and process of determining simple interest.
- Acquire knowledge on the repercussions of interest rate adjustments on financial lending and investment decisions.
- Analyze how repaying loans affects the residual balance in scenarios involving simple interest.