The amount charged on the loan which is the loan interest rate, increases as the time after the initial amount is credited into the account increases.
- The interest on the Federal Direct Unsubsidized Loan after 4 years 6 months is <u>$1,911.195</u>
Reasons:
The given parameter are;
Loan amount, the principal, P = $9,900
Duration of the loan = 10 years
Loan interest rate, R = 4.29%
Required:
The amount of interest that will accrue while she is still in school and over the 6-months grace period for the freshman loan.
Solution:
Based on a similar question on an online source, we have;
Interest, I = P × R × T
Where;
T = The time = The time the freshman is in school + 6 months
Therefore, normally, we have;
T = 4 years + 6 months = 4.5 years
R = 4.29% = 0.0429
Therefore;
Interest, I = 9,900 × 0.0429 × 4.5 = 1911.195
The interest that will accrue while she is still in school and over the 6-months grace period for the loan,<em> I</em> = <u>$1,911.195</u>
Learn more about the interest rate here:
brainly.com/question/1368015
