Question

Marlie will be starting college next month She was approved for a 10 year, Federal Unsubsidized student loan in the amount of $ 18,800 at 4,29\% . She knows she has the option of beginning repayment of the loan In 4.5 years. She also knows that during this nonpayment time, interest will accrue at 4.29%.

Answer 1

$3,629.34

Explanation:

Calculation for What will she now pay in interest over the term of the loan

Using this formula

Interest=Principal *Rate *Time

Where,

Principal=$18,800

Rate=4.29%or 0.0429

Time= 4.5 years

Let plug in the formula

Interest=$18,800*0.0429*4.5 years

Interest=$3,629.34

Therefore What will she now pay in interest over the term of the loan is $3,629.34