1. Candace just started college and received a student loan. Assume she received the loan in August of her freshman year and graduated at the end of May of her senior year. She plans to obtain the maximum loan amount allowed at the beginning of each year. She does not have to make any payments while she is in school, but the interest owed (5.80%) accrues each month and is added to the balance of the loan. After she graduates, Candace receives a six month grace period, which simply means that she does not need to start making monthly payments throughout the grace period, but the interest is still accrued and added to the balance of the loan. At the end of the grace period, the standard repayment plan is to amortize the debt using monthly payments for twenty years. a. Create a timeline to show when the loans will be taken, assuming Candace borrows the following amounts each year: Freshman year - $6,000; Sophomore year - $7,500; Junior year - $7,500; Senior year - $9,000. (4 points) b. What is the balance of the loan when Candace graduates after her senior year? (12 points) c. What is the balance of the loan six months after graduation? (4 points) d. Calculate the monthly payments Candace must make after the grace period. Create an amortization schedule (formatted like we did in class) to show how the monthly payments reduce the loan balance. (20 points) 1. Candace just started college and received a student loan. Assume she received the loan in August of her freshman year and graduated at the end of May of her senior year. She plans to obtain the maximum loan amount allowed at the beginning of each year. She does not have to make any payments while she is in school, but the interest owed (5.80%) accrues each month and is added to the balance of the loan. After she graduates, Candace receives a six month grace period, which simply means that she does not need to start making monthly payments throughout the grace period, but the interest is still accrued and added to the balance of the loan. At the end of the grace period, the standard repayment plan is to amortize the debt using monthly payments for twenty years. a. Create a timeline to show when the loans will be taken, assuming Candace borrows the following amounts each year: Freshman year - $6,000; Sophomore year - $7,500; Junior year - $7,500; Senior year - $9,000. (4 points) b. What is the balance of the loan when Candace graduates after her senior year? (12 points) c. What is the balance of the loan six months after graduation? (4 points) d. Calculate the monthly payments Candace must make after the grace period. Create an amortization schedule (formatted like we did in class) to show how the monthly payments reduce the loan balance. (20 points)