Answer:
Marco will owe $ 23,360 once he graduates.
Explanation:
1. Let's review the information given to us to answer the question correctly:
Principal of the loan = 20,000
Time in years = 4
Interest rate = 4.2%
2. What is the amount he will owe once he graduates?
Let's use the formula of the interest simple, this way:
A = P * (1 + r * t)
where P is the principal of the loan, r the interest rate and t, the time in years.
Substituting with the values we know, we have:
A = 20,000 * (1 + 4 * 0.042)
A = 20,000 * 1.168
A = 23,360
Marco will owe $ 23,360 once he graduates.