The present worth of the loan is <span>$6,250
</span>The start of payment will after 4 years
The nominal interest rate is 6.1% compounded monthly which is equal to 6.27% effective.
The future worth (after graduation) of the loan is
F = <span>$6,250 (1 + 0.0627)^4 = $7,971.18
The interest is
</span>$7,971.18 - $6,250 = $1,721.18
I didn't round off when solving these so it's not the exact answer among the choices but the closest is letter B <span>$1,722.22</span>
General form of Equation of straight line is:
y=m x + b
m=-1/2 passing through (6,2)
plug these values in general form,we get
2=-1/2(6)+b
2=-3+b
5=b
Hence,
y=(-1/2)x + 5
Rewriting to make it in General form:
-1/2 x + y - 5 = 0
Answer: for the first one is the second one
for the next one is the last one
