Lisa takes a loan of $10,500 at a 9% simple interest rate for 7 years. How much interest will she pay after 3 years? How much interest will she pay in total for the loan?
A. $2,835.00; $6,615.00
B. $8,280.00; $9,720.00
C. $13,598.00; $19,194.00
D. $28,350.00; $66,150.00
To calculate the interest for the first 3 years, we can use the formula:
I = P * r * t
where I is the interest, P is the principal (loan amount), r is the interest rate, and t is the time period in years.
So for Lisa's loan, the interest for the first 3 years would be:
I = $10,500 * 0.09 * 3
I = $2,835.00
To calculate the total interest for the loan, we can use the formula:
I = P * r * t
where I is the interest, P is the principal (loan amount), r is the interest rate, and t is the time period in years.
So for Lisa's loan, the total interest would be:
I = $10,500 * 0.09 * 7
I = $6,615.00
Therefore, the answer is A. $2,835.00; $6,615.00.