Question

You’ve been making student loan payments consistently for the past year, and your credit score has increased. Now, your APR is lower, 18%. If you owe $777, what is the amount of interest you will owe?

Answer 1

To find the amount of interest you will owe, we need to calculate the interest using the formula:

Interest = Principal * Rate * Time

Where:

- Principal = $777 (the amount you owe)

- Rate = 18% per year (expressed as a decimal, or 0.18)

- Time = 1 year (since you have been making payments for a year)

Plugging in these values, we get:

Interest = $777 * 0.18 * 1

Interest = $139.86

So, the amount of interest you will owe is approximately $139.86.