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Odalys Gonzalez
on Dec 15, 2024

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Ada had $12,500 in student loans. On Sept 3, she began repayments of $450 per month when simple interest rates were 9.2% annually. On October 8 the interest rates rose to 9.5%. By what amount will the principal be reduced given the $450 payment on October 31?

A) $361.42
B) $355.18
C) $352.09
D) $350.01
E) $347.78

Student Loans

Borrowed money aimed at financing higher education expenses, which typically comes with interest and must be repaid after the student graduates or leaves school.

Simple Interest Rates

An interest calculation method where the interest is computed only on the original principal amount throughout the life of the investment or loan.

Principal

The original sum of money borrowed in a loan or put into an investment, excluding interest.

  • Familiarize yourself with the notion and numerical operations for simple interest calculation.
  • Ascertain the outcome of making payments on the principal balance of a loan with simple interest applied.
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Cadarius GilbertDec 17, 2024
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