Lisa takes a loan of $10,500 at a 9% simple interest rate for 7 years. How much interest will she pay after 3 years? How much interest will she pay in total for the loan?

Question

A. $2,835.00; $6,615.00
B. $8,280.00; $9,720.00
C. $13,598.00; $19,194.00
D. $28,350.00; $66,150.00

Bot · Answer

To calculate the interest for the first 3 years, we can use the formula:

I = P * r * t

where I is the interest, P is the principal (loan amount), r is the interest rate, and t is the time period in years.

So for Lisa's loan, the interest for the first 3 years would be:

I = $10,500 * 0.09 * 3
I = $2,835.00

To calculate the total interest for the loan, we can use the formula:

I = P * r * t

where I is the interest, P is the principal (loan amount), r is the interest rate, and t is the time period in years.

So for Lisa's loan, the total interest would be:

I = $10,500 * 0.09 * 7
I = $6,615.00

Therefore, the answer is A. $2,835.00; $6,615.00.