Viola took out a $8,470 Stafford loan at the beginning of her four-year college career. The loan has a duration of ten years and
an interest rate of 7.5%, compounded monthly. How much more will Viola’s monthly payment be if the loan is unsubsidized than if the loan is subsidized? Round all dollar values to the nearest cent. a. $35.05 b. $45.94 c. $96.96 d. $63.52
To make things simple you can first find out what 8 1/16 is. 8 1/16 is approximately 8.0625. Then find what 5 1/2 is which is 5.5. Now all you have to do is subtract 5.5 from 8.0625 (8.0625-5.5) and that should be equal to 2.5625.
