Niki makes the same payment every two months to pay off his $61,600 loan. The loan has an interest rate of 9.84%, compounded every two months. If Niki pays off his loan after exactly eleven years, how much interest will he have paid in total? Round all dollar values to the nearest cent.

There are 6 two-month periods per year, so the interest rate per payment period is 9.84% ÷ 6 = 1.64%, and 11 years contains 66 periods. Using the loan-payment formula, the equal payment is about $1,534.78. Niki pays about 66 × $1,534.78 = $101,295.48 in total; subtracting the $61,600 loan gives $39,695.48 in interest, choice A.

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