Say you take out a loan with a principal of $44,500. The interest rate is 13.11%, compounded monthly. If you make consistent monthly payments and pay off the loan over the course of six and a half years, how much interest will you have paid in total? Round dollar amounts to the nearest cent.

The monthly interest rate is 13.11% ÷ 12 = 0.010925, and six and a half years gives 78 monthly payments. Using the loan-payment formula, the monthly payment is about $850.64. The total paid is 78 × $850.64 = $66,349.92; subtracting the $44,500 principal gives $21,849.92 in interest, choice A.

AI-written and checked against the verified answer.