Final answer:
To determine the total amount of interest that Hula will owe by the time he begins to make payments on his student loans, the interest for the first loan at 6.7% and the second loan at 7.6% needs to be calculated separately and then summed. The timeframes for interest accrual on both loans are different, with the first loan accruing interest over 4.58 years and the second over 2.58 years.
Step-by-step explanation:
The main question here is to calculate the total amount of interest that will accrue on Hual's student loans until payments begin. Given that Hula has two separate loans with different interest rates and different times at which they were acquired, we need to calculate the interest for each loan and then sum them to get the total interest accrued.Since payments are deferred until after graduation, we assume that the interest will compound annually. The formula for the compound interest is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.Hual's first loan is out for a total period of 4 years and 7 months (4 years until graduation plus 3 months deferment). However, since we are using the formula that compounds annually, we'll use 4.58 years for t.The second loan is taken out 2 years after the first, so the total time until payments begin would be 2 years and 7 months (2 years until graduation plus the 3 months deferment period). This is approximately 2.58 years in terms of loan duration.Once we calculate the interest for both loans, we add them together to get the total amount of interest.In conclusion, to find out the exact amount of interest accrued, specific calculations would be needed based on the formulas provided here, which consider the different interest rates and loan durations.