Jill Ley took out a loan to pay for her child's education for $60,000. The loan would be repaid at the end of 8 years in one payment with an interest of 6 percent. The total amount Jill has to pay back at the end of the loan is:
88,800
Interest = principal * rate * time
I = 60,000 * 0.06 * 8
I = 28,800
60,000 + 28,800 = ?
To determine the total amount Jill has to pay back at the end of the loan, we need to calculate the interest on the loan and add it to the principal amount.
The interest on the loan can be calculated using the formula:
Interest = Principal * Rate * Time
Where:
Principal = $60,000
Rate = 6% (converted to decimal = 0.06)
Time = 8 years
Calculating the interest:
Interest = $60,000 * 0.06 * 8
Interest = $28,800
To find the total amount Jill has to pay back, we add the interest to the principal amount:
Total amount = Principal + Interest
Total amount = $60,000 + $28,800
Total amount = $88,800
Therefore, Jill has to pay back a total of $88,800 at the end of the 8-year loan.
To find the total amount that Jill has to pay back at the end of the loan, you need to calculate the interest on the loan amount.
First, find the interest amount by multiplying the loan amount by the interest rate:
Interest = Loan Amount * Interest Rate
Interest = $60,000 * 0.06
Interest = $3,600
Now, add the interest to the loan amount to find the total amount Jill has to pay back:
Total Amount = Loan Amount + Interest
Total Amount = $60,000 + $3,600
Total Amount = $63,600
Therefore, the total amount Jill has to pay back at the end of the loan is $63,600.