##### (answered) - What are the formulas to A, B, C,D? How do you actually get the

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**Question**

What are the formulas to A, B, C,D? How do you actually?get the answer to the problem? step by step?

Year in

college

Amount

Interest

borrowed rate

1

$3,500

3.40%

2

$4,000

3.40%

3

$5,000

3.86%

4

$5,000

4.66%

Note : We assume that student borrowed the loan from starting of the year

It is assume that the whole amount loan is subsidized loan

a

How much do you owe after graduating = $17,500

Year in

college

b

Amount

Interest Total Amount Interest

borrowed rate

to be paid

Amount

$4,009.05

$509.05

1

$3,500

3.40%

$4,428.84

$428.84

2

$4,000

3.40%

$5,400.66

$400.66

3

$5,000

3.86%

$5,238.02

$238.02

4

$5,000

4.66%

$19,076.58 $1,576.58

What is the consolidated interest rate?

Add the per loan weight factors together to obtain the total per loan weight factor. = $1576.58

Year in

college

Amount

Interest Total Amount Interest

borrowed rate

to be paid

Amount

$3,620.86

$120.86

1

$3,500

3.40%

$4,138.12

$138.12

2

$4,000

3.40%

$5,196.47

$196.47

3

$5,000

3.86%

$5,238.02

$238.02

4

$5,000

4.66%

$18,193.47

$693.47

Add the loan amounts together to obtain the total loan amount. = $693.47

Divide the total per loan weight factor by the total loan amount. Multiply this by 100 to express it as a percentage.

This will give you the actual interest rate. = $693.47/$17500 = 3.96%

c

How much do you have to pay each month if you want to pay off the consolidated loan in five years?

$321.97

d

Assume you can pay $200 per month. How long does it take to pay off the consolidated loan?

8.625 years

Solution ID:1037827 | Question answered on 27-Aug-2016

Price :*$14*