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Ulleksa [173]
4 years ago
13

Suppose Marlie only paid interest during her 4 years in school and the six-month grace period. What will she pay now in interest

over the term of the loan
Mathematics
1 answer:
Kay [80]4 years ago
3 0

Answer: interest = $ 3,629.34

Step-by-step explanation:

Complete question

(Marlie will be starting college next year, federal unsubsidized student loan in the amount of $18,800 at 4.29%. She knows that during this non-payment time, interest will accrue at 4.29%. Suppose Marlie only paid the interest during her four years in school and the six-month grace period. What will she now pay in interest over the term of the loan.)

This question relates to interest over a single period of time and since it's not compounded, we use formula for simple interest to calculate the interest accrued.

Data;

P = $18,800

R = 4.29% = 0.0429

T = 4.5 years

S.I = ?

S.I = PRT

S.I = 18,800 * 0.0429 * 4.5

S.I = $3,629.34

Therefore she'll need to pay $3,629.34 as interest accrued.

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