Debbie mcadams paid 7% interest on a $10,000 loan balance. jan burke paid $8,525 interest on a $77,500 loan. based on 1 year.
a. what was the amount of interest paid by debbie?
interest paid by debbie
$
700
b. what was the interest rate paid by jan? (round your answer to the nearest tenth percent.)
interest rate paid by jan
11 %
c. debbie and jan are both in the 28% tax bracket. since the interest is tax deductible, how much will debbie and jan each save in taxes? (round your answers to the nearest cent.)
debbie
2604.00
$
save in taxes
jan
2387.00
$
not sure if i'm doing this right

i can answer this question sweetie!

step-by-step explanation:

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.