Please can someone help me with this problem?

Question

 To finance her community college education La Tonya takes out a student loan for $3500. After a year, La Tonya decides to pay off the interest, which is 4.50% of $3500. How much will she pay?

Answer 1

Hi Larae,

 

If we assume that this is interest with annual compounding then  the calculation would be as follows

 

4.5% * 3500

 

or

 

.045*3500

 

and that equals

 

157.50  

 

Hope this helps