Question

Often, through​ government-supported programs, students may obtain​ "bargain" interest rates such as​ 6% or​ 8% to attend college.​ Frequently, payments are not due and interest does not accumulate until the student stops attending college. A student has borrowed ​$42 comma 000 at an annual interest rate of 6.4​%. Calculate the amount of interest due 6 months after the student must begin payments.

Answer 1

amount of interest due after 6 month is $1344

Step-by-step explanation:

given data

borrowed P = ​$42,000

interest rate = 6.4​% = 0.064

time period = 6 month = 0.5 year

solution

we get here interest amount on 6 month that is express as

interest = principal × rate × time ..........1

put her value and we get

interest = 42,000 × 0.064 × 0.5

interest = $1344

so amount of interest due after 6 month is $1344