(Student Loans LC)

A student is graduating from college in six months but will need a loan in the amount of $2,560 for the last semester. The student receives an unsubsidized Stafford Loan with an interest rate of 6.8%, compounded monthly, with a six month grace period from the time of graduation. After the grace period the student makes fixed monthly payments of $84.34 for three years. Determine the total amount of interest the student paid.

$985.13
$3,036.24
$476.24
$378.81

Question

(Student Loans LC)

A student is graduating from college in six months but will need a loan in the amount of $2,560 for the last semester. The student receives an unsubsidized Stafford Loan with an interest rate of 6.8%, compounded monthly, with a six month grace period from the time of graduation. After the grace period the student makes fixed monthly payments of $84.34 for three years. Determine the total amount of interest the student paid.

$985.13
 $3,036.24
 $476.24
 $378.81

Phantomdex · Answer

Alright, which two are we eliminating this time?

TheJag18 · Answer

no clue. lol. lets go through the steps

TheJag18 · Answer

well, can we cross at b? thats to big right?

Phantomdex · Answer

Right, B is way too big.

TheJag18 · Answer

what about a also?

Phantomdex · Answer

Right, a would also be to big.

TheJag18 · Answer

so what do we do to solve for c or d?

Phantomdex · Answer

Well, first look at our interest rate and the amount we start out with, based on those it's actually pretty easy to guess if you know how to. Based on those numbers alone which do you think could be the right answer?

TheJag18 · Answer

d?

Phantomdex · Answer

Not quite, D is a little two low but that's Alright, your answer is C.

TheJag18 · Answer

can you send the work with the forula and everything? plz?

Phantomdex · Answer

truthfully? There's calculators online for compounding and such.

Phantomdex · Answer

So there's not much work really

Phantomdex · Answer

Just a matter of knowing how to plug the numbers in

TheJag18 · Answer

how you do that?

Phantomdex · Answer

Okay so one of the ones I normally use I'll put the link in.

Phantomdex · Answer

https://www.calculator.net/interest-calculator.html?cstartingprinciple=84.34&cannualaddition=0&cmonthlyaddition=0&cadditionat1=end&cinterestrate=6.8&ccompound=monthly&cyears=3&cmonths=0&ctaxtrate=0&cinflationrate=0&printit=0&x=Calculate#interestresults

Phantomdex · Answer

This is one of the ones I use to calculate interest

TheJag18 · Answer

kk. thank you. its bookmarked

Phantomdex · Answer

There's one other if you need a formula.

Phantomdex · Answer

https://www.calculatorsoup.com/calculators/financial/compound-interest-calculator.php

Phantomdex · Answer

It gives you all the work to.

TheJag18 · Answer

awsome thank you

Phantomdex · Answer

No problem.