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

Description

Solution download


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
SiteLock

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now