Question

Jill Ley took out a loan to pay for her child's education for $60,000. The loan would be repaid at the end of 8 years in one payment with an interest of 6 percent. The total amount Jill has to pay back at the end of the loan is

Answer 1

Jill has to pay back the 60 thousand that was loaned to her and 6% of that 60 thousand on top of that (in interest). You're adding 6% of 60 thousand on top of the amount you have to pay back each year that passes by.