1. If you need to take out a $40,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.5% interest for 10 years, a federal unsubsidized loan with 6.1% interest for 10 years, or a private loan with 5.0% interest and a term of 15 years? How much would you save over the other options? All payments are deferred for months after graduation and the interest is capitalized. (a)Find the total cost of the subsidized loan. (b) Find the total cost of the unsubsidized loan. (c) Find the total cost of the private loan. (d) Which loan has the overall lowest cost, and how much would you save over the other options? 2. 1. If you need to take out a $40,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.5% interest for 10 years, a federal unsubsidized loan with 6.1% interest for 10 years, or a private loan with 5.0% interest and a term of 15 years? How much would you save over the other options? All payments are deferred for months after graduation and the interest is capitalized. (a)Find the total cost of the subsidized loan. (b) Find the total cost of the unsubsidized loan. (c) Find the total cost of the private loan. (d) Which loan has the overall lowest cost, and how much would you save over the other options? 2