On January 5, Ebony Davis borrowed $6,500 on a simple interest loan from a lending institution to finance her catering business. She borrows the money at a rate of 8.5% with a term ending on December 9.

a. Calculate Ebony's interest on the simple interest loan if she waits until the full term to pay back the loan.
b. If Ebony makes payments of $1500 on May 3 and $2500 on September 11,
how much will she have left to pay on December 9?
c. How much money does she save by making the payments instead of waiting to the end to repay the loan?

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a. To calculate Ebony's interest on the simple interest loan if she waits until the full term to pay back the loan, we can use the formula for simple interest:

Interest = Principal x Rate x Time

Given:
Principal (P) = $6,500
Rate (R) = 8.5% or 0.085 (decimal)
Time (T) = 11 months (from January 5 to December 9)

Plugging in the values into the formula:

Interest = $6,500 x 0.085 x 11
Interest = $6,500 x 0.935
Interest = $6,027.50

Therefore, Ebony's interest on the simple interest loan if she waits until the full term to pay back the loan is $6,027.50.

b. To calculate how much Ebony will have left to pay on December 9 after making payments of $1500 on May 3 and $2500 on September 11, we need to subtract the total payments made from the original loan amount.

Total payments made = $1500 + $2500 = $4000

Remaining amount = Loan amount - Total payments made
Remaining amount = $6,500 - $4,000
Remaining amount = $2,500

Therefore, Ebony will have $2,500 left to pay on December 9.

c. To calculate how much money Ebony saves by making the payments instead of waiting until the end to repay the loan, we need to subtract the remaining amount (from part b) from the interest paid if she waits until the full term.

Savings = Interest - Remaining amount
Savings = $6,027.50 - $2,500
Savings = $3,527.50

Therefore, Ebony saves $3,527.50 by making the payments instead of waiting until the end to repay the loan.