Jack needs to borrow ​$700 for one year. Bank South will give him the loan at 11​%. SunCoast Bank will give him the loan at 7% with a ​$27 loan origination fee. First National will give him the loan at 6​% with a ​$15 loan origination fee. If Jack takes the loan at First​ National, the amount of total interest and fees is

To determine the total cost for Jack if he takes the loan at First National, we need to calculate both the interest on the loan and the loan origination fee.

1. **Calculate the interest on the loan:**

The formula to calculate simple interest is:
\[ \text{Interest} = P \times r \times t \]

Where:
- $ P $ is the principal amount ($700)
- $ r $ is the annual interest rate (6%, or 0.06)
- $ t $ is the time in years (1 year)

\[ \text{Interest} = 700 \times 0.06 \times 1 = 42 \]

2. **Add the loan origination fee:**

The loan origination fee at First National is $15.

3. **Total cost:**

\[ \text{Total cost} = \text{Interest} + \text{Origination fee} \]
\[ \text{Total cost} = 42 + 15 = 57 \]

So, if Jack takes the loan at First National, the total amount of interest and fees is $57.

Would you like details or have any questions?

Here are 5 additional questions you might want to ask:
1. How do you calculate the total amount to be repaid for a loan?
2. What is the formula for compound interest?
3. How do loan origination fees affect the overall cost of a loan?
4. Can you compare the total costs for the other banks mentioned?
5. What factors should one consider when choosing a loan?

**Tip:** Always ensure to check the Annual Percentage Rate (APR) when comparing loan options, as it includes both the interest rate and any additional fees, giving a more accurate picture of the total cost of borrowing.

Discover how to calculate the total interest and fees for a loan at First National. This problem involves determining the simple interest on a loan of $700 at 6% annual interest for one year, plus a $15 loan origination fee. Ideal for students or anyone interested in understanding loan costs.

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