Liam Had $5,200 in Student Loans

question 28

Multiple Choice

Liam had $5,200 in student loans. On August 9, he began repayments of $50 per month when simple interest rates were 9.2% annually. On September 8, the interest rates rose to 9.5%. By what amount will the principal be reduced given the $50 payment on September 30?

• A) $8.90
• B) $9.91
• C) $10.90
• D) $11.90
• E) $12.90

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Definitions:

Parental Guidance

The process by which parents influence their children's development, values, and behaviors through direct and indirect interactions.

Case Study

An in-depth examination of a single subject or entity to explore its unique characteristics, typically used in psychological and sociological research.

Erikson's Theory

Erik Erikson's psychosocial development theory, which outlines stages of growth and challenges from infancy through adulthood, emphasizing the development of identity and crisis resolution.

Sixth Stage

A developmental phase in Erik Erikson's theory of psychosocial development, often associated with young adulthood and the challenge of forming intimate relationships.