Question

Maria was approved for a 10-year, Federal Unsubsidized student loan in the

amount of $17,700 at a rate of 3.9%. Loan repayment will begin after 4.5
years.

Answer 1

3796.65

Explanation:

I = $ 3,106.35

Equation:

I = Prt

Calculation:

First, converting R percent to r a decimal

r = R/100 = 3.9%/100 = 0.039 per year,

then, solving our equation

I = 17700 × 0.039 × 4.5 = 3106.35

I = $ 3,106.35

The simple interest accumulated

on a principal of $ 17,700.00

at a rate of 3.9% per year

for 4.5 years is $ 3,106.35.

$ 6,903.00 - 3,106.35 = 3796.65