A student obtains a loan for $7,250. How much money does the student actually receive, assuming a loan fee of 1.09%? (Round your answer to the nearest cent.)

Answer 1

To calculate the amount of money the student actually receives after deducting the loan fee, we can follow these steps:

1. Calculate the loan fee: The loan fee is 1.09% of $7,250.

   \[ \text{Loan Fee} = 7,250 \times \frac{1.09}{100} = 7,250 \times 0.0109 = 79.2775 \]

2. Round the loan fee: Since the fee should typically be rounded to the nearest cent, we round $79.2775 to $79.28.

3. Calculate the amount received: Now, subtract the loan fee from the original loan amount to find out how much the student actually receives.

   \[ \text{Amount Received} = 7,250 - 79.28 = 7,170.72 \]

Thus, the amount of money the student actually receives is $7,170.72.