Question

Andy took out an unsubsidized student loan of $11,000 at a 7.2% APR, compounded monthly, to pay for his last two semesters of college. If he will begin paying off the loan in 15 months, how much will he owe when he begins making payments?

Answer 1

$12,032.68, since Andy is responsible for the interest on the loan that accrues before he starts making payments.

Answer 2

$12,032.68, since Andy is responsible for the interest on the loan that accrues before he starts making payments. - APEX

Step-by-step explanation: