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# Parnel's student loan has an annual interest rate of 8.25%. The loan a

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Math Expert
Joined: 02 Sep 2009
Posts: 56300
Parnel's student loan has an annual interest rate of 8.25%. The loan a  [#permalink]

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20 Dec 2017, 06:12
2
1
00:00

Difficulty:

35% (medium)

Question Stats:

65% (02:10) correct 35% (02:13) wrong based on 57 sessions

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Parnel's student loan has an annual interest rate of 8.25%. The loan and its accrued interest will be repaid in equal monthly installments after a year. If Parnel borrowed \$2,400 how much will her first payment be, if there are no additional charges or penalties?

A. \$216.50
B. \$208.50
C. \$200.00
D. \$191.50
E. \$183.50

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Joined: 17 Jul 2017
Posts: 33
Re: Parnel's student loan has an annual interest rate of 8.25%. The loan a  [#permalink]

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20 Dec 2017, 08:55
1
Rate = 8.25
Principal = 2400
Time= 1 year
Interest = p*r*t/100
2400*8.25*1/100
So,interest = \$198
Amount = 2598
If paid this in equal installment for an year = 2598/12 =216.50

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Re: Parnel's student loan has an annual interest rate of 8.25%. The loan a   [#permalink] 20 Dec 2017, 08:55
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