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Henry wants to avoid interest capitalization on his $7,800 unsubsidized Stafford loan. Henry will graduate in four years, and the loan has a duration of ten years. The loan has an interest rate of 5.6%, compounded monthly. How much must Henry pay every month to avoid interest capitalization?

a.
$14.56
b.
$43.68
c.
$36.40
d.
$31.20

2 Answers

5 votes

Answer: C

c. $36.40

Explanation:

Walter white told me

User McHat
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6 votes
The answer to your question is C. $36.40
User Moemars
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