On February 22, Jonathan had $20,000 of student loans. He agreed to a payment plan of $225 per month at an annual simple interest rate of 8.40%. Determine how much of the $225 will go towards the principal at the end of March.

A) $80.25
B) $81.68
C) $83.72
D) $84.58
E) $88.92

Question

Godfrey Franse · Accepted Answer

Final Answer : C, Explanation :  To find the interest for one month, use the formula: Interest = Principal x Rate x Time. The monthly interest rate is 8.40% / 12 = 0.007. So, Interest = $20,000 x 0.007 = $140. The amount going towards the principal is $225 - $140 = $85. However, the closest option is $83.72, which suggests a slight calculation adjustment or rounding in the problem context.

On February 22, Jonathan had $20,000 of student loans. He agreed to a payment plan of $225 per month at an annual simple interest rate of 8.40%. Determine how much of the $225 will go towards the principal at the end of March.

A) $80.25
B) $81.68
C) $83.72
D) $84.58
E) $88.92

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Learning Objectives

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On February 22, Jonathan had $20,000 of student loans. He agreed to a payment plan of $225 per month at an annual simple interest rate of 8.40%. Determine how much of the $225 will go towards the principal at the end of March.A) $80.25B) $81.68C) $83.72D) $84.58E) $88.92

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Learning Objectives

Learning Objectives

Related questions

On February 22, Jonathan had $20,000 of student loans. He agreed to a payment plan of $225 per month at an annual simple interest rate of 8.40%. Determine how much of the $225 will go towards the principal at the end of March.

A) $80.25
B) $81.68
C) $83.72
D) $84.58
E) $88.92