Loans & Interest Rates

Angelina has to take out a loan for $18,000. Which option will allow her to pay the least amount of interest?

• A 7-year loan at 5.9% simple interest.

• A 6-year loan at 5.75% simple interest.

• A 5-year loan at 6% simple interest.

• An 8-year loan at 6.2% simple interest.

John is getting a $12,000 loan on a boat. His monthly payments are $370.53 at 7% interest. He wants to pay it off in 3 years. How much will he pay in total for the loan for the boat?

• $14,593.84

• $4,446.36

• $13,339.08

• $1,339.08

John is getting a $12,000 loan on a boat. His monthly payments are $370.53 at 7% interest. He wants to pay it off in 3 years. How much interest will he have to pay on this loan?

• $840

• $4,446.36

• $13,339.08

• $1,339.08

Tyler wants to buy a 2023 Denali for $56,800. He gets a loan at 5.5% interest and will pay it off in 6 years. His monthly payments are $927.99. How much interest will be paid on this loan?

• $11,135.88

• $66,815.28

• $10,015.28

• $3,124.00

Bailey wants to attend Alabama University. She gets a loan for $30,000 at 4.75% for 5 years. Her monthly loan payments are $562.71. How much does Bailey pay in total for this loan after 5 years?

• $38,928.56

• $6,752.52

• $3,3762.60

• $33,762.60

A loan was taken out for an amount of $5,000. Which loan option will result in the least amount of interest paid on the loan?

• interest rate of 8% for 6 years

• interest rate of 7.5% for 5 years

• interest rate of 8.95% for 7 years

• interest rate of 9.3% for 8 years

Christopher buys a house for $225,000 for 6.3% interest for 30 years. His monthly payments are $1,392.69. How much will pay in total for this loan?

• $501,368.40

• $276,368.40

• $41,780.70

• $14,175.00

Christopher decides to look at another option to buy the same house for $225,000 for 8.25% interest for 15 years. His monthly payments are $2,182.82. How much will pay in interest for this loan?

• $493,392.56

• $392,907.60

• $32,742.39

• $167,907.60