Question

As an independent student Sally borrowed $4,000 her first semester of college through an Unsubsidized Stafford loan at 6.8% APR, compounded monthly. After her first semester, Sally was able to work her way through school and she graduated three years later without any additional loans. Since Sally did not make any loan payments while she was in school, what is her loan balance upon graduation? a) $4,000.00 b) $4,902.36 c) $7,869.48 d) $7,834.82

Answer 1

CPT FV=4902.3689

Step-by-step explanation:

By using financial calculator:

Given:

PMT = $0

PV = $4,000

N = 12x3 = 36 times

I/Y = 6.8% / 12

By using excel formulas

=FV(6.8%/12,12*3,0,4000)

Future value = $4,902.3689

CPT FV=4902.3689