contestada

Marlie will be starting college next month. She was approved for a 10-year, Federal Unsubsidized student

loan in the amount of $18,800 at 4.29%. She knows she has the option of beginning repayment of the loan

in 4.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%.

How much interest will Marlie accrue during the 4.5-year non-payment period?

Respuesta :

Answer:

Using the simple interest formula

$3,629.34

Using the compound interest formula,

$3911.71

Step-by-step explanation:

Data provided in the question:

Total loan amount = $18,800

Interest rate = 4.29% = 0.0429

Time = 4.5 years

Now,

Using the simple interest formula

Interest = Principle × Rate × Time

or

Interest = $18,800 × 0.0429 × 4.5

= $3,629.34

Using the compound interest formula,

we have

Interest = Principle × (1 + rate )ⁿ - Principle

n is the time in years

= $18,800 × [tex](1 + 0.0429 )^{4.5}[/tex] - $18,800

= $22,711.71 - $18,800

= $3911.71

Otras preguntas