Question

Ren is attending a 4 year college. As a freshman he was approved for a 10 year feederal unsubized student loan in the amount of 8,000 at 9.18%. He knows he has the option of beginning repayment of the loan in 4.5 years he also knows that during this non repayment period interest will accrue at 9.18%. How much interest will remain accurate during he 4.5 year nonpayment period

Answer 1

The amount of interest that will accrue during the 4.5 year nonpayment period is approximately $3,294.

Step-by-step explanation:

To calculate the amount of interest that will accrue during the 4.5 year nonpayment period, we can use the formula:

I = P * r * t

Where:

• I is the interest
• P is the principal amount of the loan
• r is the interest rate (as a decimal)
• t is the time in years

Given that the principal amount of the loan is $8,000, the interest rate is 9.18% (or 0.0918 as a decimal), and the time is 4.5 years, we can plug in these values to calculate the interest:

I = 8000 * 0.0918 * 4.5

I ≈ $3,294

Therefore, the amount of interest that will accrue during the 4.5 year nonpayment period is approximately $3,294.