25
QuizMultiple Choice

Borrowing Money

Question 25 • 26-27 Ignite Technical Math-Financial Math - MA2007

Travis took out a six-year loan with a principal of $15,000. He made monthly payments of $225 for the entire period, at which point the loan was paid off. How much did Travis pay in interest?

Answer
A
$1,200
B
$1,350
C
$800
D
$0

Explanation

A six-year loan has 6 × 12 = 72 monthly payments. Travis paid 72 × $225 = $16,200 altogether; subtracting the $15,000 principal leaves $1,200 in interest. The correct choice is $1,200.

AI-written and checked against the verified answer.

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