An $8,000 Demand Loan at a Fixed Simple Interest Rate

Multiple Choice

An $8,000 demand loan at a fixed simple interest rate of 10.5% was advanced on May 10. A payment of $2,000 was made on July 15 and a final payment was made on Sept. 5. What was the size of the final payment?

A) $6,241.64
B) $6,243.92
C) $6,363.61
D) $6,151.89
E) $8,152.90