Will Fan & Medal

Imagine you each need to apply for an unsubsidized loan to pay for the costs of college. The loan has a fixed interest rate of 6.8% compounded monthly. The interest begins immediately, but payments are not required until six months after graduation. The loan must be paid off within 10 years after the deferment period. You must show your work on all of the following calculations, except where indicated.

Assuming it takes four years to graduate and no payments are made during the deferment period, what is the balance of the loan when it’s time to make the first payment?

Question

Will Fan & Medal

Imagine you each need to apply for an unsubsidized loan to pay for the costs of college. The loan has a fixed interest rate of 6.8% compounded monthly. The interest begins immediately, but payments are not required until six months after graduation. The loan must be paid off within 10 years after the deferment period. You must show your work on all of the following calculations, except where indicated.

Assuming it takes four years to graduate and no payments are made during the deferment period, what is the balance of the loan when it’s time to make the first payment?

anonymous · Answer

Basically, $143,302.47 with 6.8% interest compounded monthly for 10 years

perl · Answer

are you asking or answering yourself :)