The amount of interest to be paid in total for six and a half years is $59,357.31
Computation:
Given,
[tex](P)[/tex] Principal Amount =$44,500
[tex](r)[/tex] Interest rate =13.11% annually
The interest is compounded monthly [tex](n =12)[/tex]
[tex](t)[/tex] time period= 6.5 years
The formula of compound interest will be used:
[tex]A=P\times(1+\frac{r}{n})^{n\times t}[/tex]
Substituting the values in the formula:
[tex]\begin{aligned}A&=P\times(1+\frac{r}{n})^{n\times t}\\&=\$44,500\times(1+\frac{0.1311}{12})^{12\times 6.5}\\&=\$44,500\times 2.3338\\&=\$103,857.31\end{aligned}[/tex]
Now, the value of total interest paid is computed by taking the difference between the annuity amount and the principal amount.
[tex]\begin{aligned}\text{Total Interest}&=\text{Annuity-Principal}\\&=\$103,857.31-\$44,500\\&=\$59,357.31\end{aligned}[/tex]
Therefore, from the given options non of the options are correct.
To know more about compound interest, refer to the link:
https://brainly.com/question/25857212
