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weqwewe [10]
2 years ago
6

Barb is a freshman attending a 4-year college. She has been approved for a $12000

Mathematics
1 answer:
tester [92]2 years ago
8 0

Answer:

The amount in interest accruable to the U.S. Department of Education after 4.5 years is $2,882.33

Step-by-step explanation:

The given parameters are;

The amount, P of subsidized federal loan Barb has been approved for = $12,000

The interest rate at which the loan was approved, r = 4.29%

The duration of the loan = 10 years

The interest after 4.5 years is given as follows;

A = P \times \left (1 + \dfrac{r}{n} \right  ) ^{n \cdot t}

Where;

A = The total amount of the loan plus interest after a given time period

n = The number of compounding of the interest per annum

Plugging in the values, we get;

A = 12,000 \times \left (1 + 0.049 \right  ) ^{4.5} \approx 14,882.33

The interest, i, is therefore given as follows;

i = A - P = 14,882.33 - 12,000 = 2,882.33

The interest, i after 4.5 years = $2,882.33

The amount in interest accruable to the U.S. Department of Education after 4.5 years = $2,882.33.

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