4 years ago

Which type of loan requires that you pay the interest accumulated during college?

1 answer:

3 0

The answer to this question is unsubsidized loan.
In unsubsidized loan for school payment, <span>the interest will be accumulated and be added to the principal amount of the total loan that you make.
The difference between unsubsidized and subsidized loan is that unlike in subsidized loan, the government do not pay for the loan interest for unsubsidized loan.</span>

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Answer:

r = 5.35%

Explanation:

Given:

n = 20
PV = -$3,025,000 (the amount you should have if you receive a lump-sum today)
PMT = $250,000

To find the rate of return that built into the annuity, we can use Excel with following information of the function:

=rate(nper, pmt, -PV)

<=> rate (20,250000, -3025000 )

<=> r = 5.35%

Hope it will find you well.

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Explanation:

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