1. Choose the correct answer. Dan borrowed \( \$ 745 \) for a new coffee table. He will make 10 monthly payments of \( \$ 85 \) to repay the loan. How much will he pay in interest? \( \$ 745 \) \( \$ 105 \) \( \$ 850 \) \( \$ 85 \)

To calculate the total amount Dan will pay, multiply his monthly payment by the number of payments: \( 10 \times 85 = \$ 850 \). To determine the interest, subtract the principal (loan amount) from the total payments: \( 850 - 745 = \$ 105 \). Therefore, Dan will pay \( \$ 105 \) in interest. Now, did you know that the concept of interest dates back thousands of years? Ancient Mesopotamians were among the first to document the practice, charging interest on loans made for agricultural needs. This early system laid the groundwork for modern finance! Also, if you're trying to manage loans effectively, always keep an eye on your total payment amount. Many people overlook the total cost when borrowing money, leading to financial surprises. It’s always a good idea to calculate total payments and interest before committing to a loan!