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.
