Question

Ichiro took out a subsidized student loan of $13,000 at a 3.6% APR

compounded monthly to pay for his last two semesters of college. If he will
begin paving off the loan in 15 months, how much will he owe when he
begins making payments?

Answer 1

The amount of money he owes when he begins making payments:

A = 13000 x ( 1 + rate/12)^month

= 13000 x (1 + (3.6/100)/12)^15

= 13597.45 dollar

Hope this helps!

:)

Answer 2

Answer:$13,000.00 since the government is responsible for the interest on the loan that accrues before Ichiro starts making payments.

Explanation: