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:

Senders And Receivers

The parties involved in the transmission and reception of a message in the communication process.

Communication Efforts

The deliberate actions taken to convey information, ideas, or feelings to others.

Practical

Relating to actual experience or use; concerned with the application or use of something rather than theory.

Timely

Occurring at a suitable or opportune moment, often implying promptness or appropriateness in timing.