1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Otrada [13]
3 years ago
13

Gilbert is graduating from college in one year, but he will need a loan in the amount of $5,125 for his last two semesters. He m

ay either receive an unsubsidized Stafford Loan with an interest rate of 6.8%, compounded monthly, or his parents may get a PLUS Loan with an interest rate of 7.8%, compounded monthly. The Stafford Loan has a grace period of six months from the time of graduation. Which loan will have a higher balance at the time of repayment and by how much?
Mathematics
1 answer:
sleet_krkn [62]3 years ago
7 0
First, determine the effective interests given both interest rates.

(1)   ieff = (1 + 0.068/12)^12 - 1 = 0.07016
(2)   ieff = (1 + 0.078/12)^12 - 1 = 0.08085

Calculating the interests will entail us to use the equation,
     I = P ((1 + i)^n - 1)

Substituting the known values,
  (1)    I = ($5125)((1 + 0.07016)^1/2 - 1)
          I = $176.737

   (2)    I = ($5125)(1 + 0.08085)^1/2 - 1)
            I = $203.15

a. Hence, the greater interest will be that of the second loan. 

b. The difference between the interests,
    d = $203.15 - $176.737
          $26.413
You might be interested in
A total of $98,000 is to be​ invested, some in bonds and some in certificates of deposit​ (CDs). If the amount invested in bonds
mamaluj [8]
B= 2000 + CD
98000 = B + CD
substitute b in
98000 = 2000 + CD + CD
add variables
98000 = 2000 + 2CD
subtract 2000 from each side
96000 = 2CD
divide each side by 2
48000 = CD
7 0
3 years ago
The following steps are used to rewrite the polynomial expression x(x-5y) 2y (x-5y
Mice21 [21]
2x^3y-20x^2y^2+50xy^3
8 0
3 years ago
Max has sticks of lengths 6,7,8 and 10 inches. He wants to make a right triangle for an art project. Which 3 sticks should he us
MrMuchimi
C since that's the only triangle where A^2+B^2=C^2 (36+64=100).
4 0
3 years ago
The least common multiple of two numbers is 60, and one of the numbers is 7 less the other number. What are the numbers?
Vladimir79 [104]
5 and 12 should be the answer
5 0
3 years ago
Identify the graph of -2i<br><br> need help asap
scoray [572]

Answer:

yea

Step-by-step explanation:

7 0
3 years ago
Read 2 more answers
Other questions:
  • Lilly paid $19.16 for a 1kg apple basket. This amount includes a tax of 3%. What was the cost of the apple before tax?
    13·1 answer
  • Johns car averages 28 miles per gallon. how far can her drive on 8.25 gallons
    6·1 answer
  • at the bead shop, there are 25 rows of beads. if there are 320 beads in each row, how many beads are in the shop?
    11·2 answers
  • What’s the distance between (4,4) and (4,-1)
    8·2 answers
  • The probability of rolling a nine fair dice and getting an even number on all nine dice
    11·1 answer
  • Which equation is equivalent to √x^2+81 = x+10
    6·2 answers
  • What is the answer and the steps to get them.
    10·1 answer
  • Two straight lines are shown.
    10·2 answers
  • Sarah worked to eam $502.90. If she worked for 94 hours, how much money does Sarah earn per hour? $
    12·2 answers
  • What is the value of n?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!