Question

Kenise will begin college as a freshman next fall and has received a 10-year $5,500 Federal Direct Unsubsidized Loan with an interest rate of 6.8%. She will be required to begin making payments six months after graduation. How much interest will accrue while she is still in school and over the six-month grace period?

Answer 1

Answer:

The interest accumulated will be $3,927

Step-by-step explanation:

Mathematically;

Simple interest = PRT/100

From the question, we have P as the amount borrowed = $5,500

R is the interest rate = 6.8%

T is the time which is 10 years + 6 months = 10 1/2 years

The interest accrued will thus be;

(5,500 * 6.8 * 10.5)/100 = $3,927