Sebastian has just graduated after four years of university. He took out an unsubsidized Stafford loan worth $8,180 to help pay for his tuition. The loan has a duration of ten years. If the loan has an interest rate of 5.3%, compounded monthly, how much interest capitalization has occurred by the time he graduated? Round all dollar values to the nearest cent.

a.

$721.93

b.

$842.25

c.

$1,926.97

d.

$1,734.24

Question

Sebastian has just graduated after four years of university. He took out an unsubsidized Stafford loan worth $8,180 to help pay for his tuition. The loan has a duration of ten years. If the loan has an interest rate of 5.3%, compounded monthly, how much interest capitalization has occurred by the time he graduated? Round all dollar values to the nearest cent.


a.
 
$721.93
 

b.
 
$842.25
 

c.
 
$1,926.97
 

d.
 
$1,734.24

anonymous · Answer

i think its c but i may be wrong

anonymous · Answer

what percent would you go on that answer

anonymous · Answer

umm.. on a scale of one to ten id say a 7

anonymous · Answer

ok thanks

anonymous · Answer

np