Question

Michael took a graduate course at Caldwell college that cost $1,875. He had to take a student loan at a rate of 5 1/2% out to pay for it. If he plans on paying the loan off in 2 years, how much will he pay in total for the class?

Answer 1

interest paid = $206.25

course = $1,875.00

total = $2,081.25

Explanation:

Interest = Principal x Rate x Time

I = 1875(.055)(2)

I = 206.25