Question

Jodi owes $38,000 in students loans for college. The interest rate is 7.25% and the loan will be paid off over 10 years. How much will Jodi pay altogether?

Answer 1

Given:

P = $38,000

R = 7.25%

T = 10

We know that:

$\huge\boxed{\sf{I = P \times R \times T}}$

Now:

$\implies$ I = (38000)*(.0725)*(10)

$\implies$ I = $27,550.00

Hence:

$\bullet$ Jodi will have to pay $38,000 in principal.

$\bullet$ Plus $27,550 in interest.

$\bullet$ For a total of $65,550.00.

Answer 2

We know that:

P = $38,000, R = 7.25% and T = 10

I = P*R*T

I = (38000)*(.0725)*(10) = $27,550.00