What was the total amount repaid on a $45,000 straight loan at 7% interest over 6 months?

To determine the total amount repaid on a $45,000 straight loan at 7% interest over a duration of 6 months, it's important to first calculate the interest incurred during that period.

For a straight loan, the interest is calculated based on the principal amount and the interest rate, which is applied for the total time of the loan. The interest for a period can be calculated using the formula:

Interest = Principal × Rate × Time

Where:

• The principal is $45,000.
• The annual interest rate is 7%, or 0.07 when expressed as a decimal.
• The time frame for the loan is 6 months, which can be represented as 0.5 years.

Plugging in these numbers:

Interest = $45,000 × 0.07 × 0.5 Interest = $45,000 × 0.035 Interest = $1,575

Now that we have the total interest calculated, we can find the total amount that needs to be repaid by adding the interest to the principal:

Total Repayment = Principal + Interest Total Repayment = $45,000 + $1,575 Total Repayment = $46,575

Thus, the total