a. How much money does Sara owe upon graduation if she pays off monthly interest during school? Sara owes $ 10,000. (Round to the nearest dollar.) b. How much money does Sara owe if she pays no interest at all during her school years? Sara owes $ 13,022. (Round to the nearest dollar.) c. After graduation, what is the amount of the monthly loan repayment in Parts (a) and (b)? Monthly payment with interest repaid each month is $ 207.58. (Round to the nearest cent.) Monthly payment with no interest repaid is $ 270.32.(Round to the nearest cent.) d. How much interest does Sara repay without interest payments during school and with interest payments while in college? The total interest with interest paid while in school is $ 5,065. (Round to the nearest dollar.) The total interest with no interest paid while in school is $ 6,219 (Round to the nearest dollar.) On your student loans, if possible, try to make interest-only payments while you are still in school. If interest is not repaid, it folds into principal after graduation and can cost you hundreds (or thousands) of extra dollars in finance charges. For example, Sara borrowed $5,500 at the beginning of her freshman year and another $4,500 at the beginning of her junior year. The interest rate (APR) is 12% per year, compounded monthly, so Sara's interest accumulates at 1% per month. Sara will repay what she owes as an ordinary annuity over 60 months, starting one month after she graduates in the summer term of her fourth full year of college. Click the icon to view the interest and annuity table for discrete compounding when i = 1% per month. Discrete Compounding; 1= 1% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP P/F F/A P/A A/F 1.0100 0.9901 1.0000 0.9901 1.0000 1.0201 0.9803 2.0100 1.9704 0.4975 1.0303 0.9706 3.0301 2.9410 0.3300 1.0406 0.9610 4.0604 3.9020 0.2463 1.0510 0.9515 5.1010 4.8534 0.1960 1.0615 0.9420 6.1520 5.7955 0.1625 1.0721 0.9327 7.2135 6.7282 0.1386 1.0829 0.9235 8.2857 7.6517 0.1207 1.0937 0.9143 9.3685 8.5660 0.1067 1.1046 0.9053 10.4622 9.4713 0.0956 1.1157 0.8963 11.5668 10.3676 0.0865 1.1268 0.8874 12.6825 11.2551 0.0788 1.1381 0.8787 13.8093 12.1337 0.0724 1.1495 0.8700 14.9474 13.0037 0.0669 Capital Recovery Factor To Find A Given P A/P 1.0100 0.5075 0.3400 0.2563 0.2060 0.1725 0.1486 0.1307 0.1167 0.1056 0.0965 0.0888 0.0824 0.0769 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 1.2324 1.2447 1.2572 1.2697 1.2824 1.3478 1.4308 1.4889 1.6122 1.8167 0.8613 0.8528 0.8444 0.8360 0.8277 0.8195 0.8114 0.8034 0.7954 0.7876 0.7798 0.7419 0.6989 0.6717 0.6203 0.5504 16.0969 17.2579 18.4304 19.6147 20.8109 22.0190 23.2392 24.4716 25.7163 26.9735 28.2432 34.7849 43.0769 48.8864 61.2226 81.6697 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 18.8570 19.6604 20.4558 21.2434 22.0232 25.8077 30.1075 32.8347 37.9740 44.9550 10.0621 0.0579 0.0543 0.0510 0.0481 0.0454 0.0430 0.0409 0.0389 0.0371 10.0354 0.0287 0.0232 0.0205 0.0163 0.0122 | 0.0721 0.0679 0.0643 0.0610 0.0581 0.0554 0.0530 0.0509 0.0489 0.0471 0.0454 0.0387 0.0332 0.0305 0.0263 0.0222 a. How much money does Sara owe upon graduation if she pays off monthly interest during school? Sara owes $ 10,000. (Round to the nearest dollar.) b. How much money does Sara owe if she pays no interest at all during her school years? Sara owes $ 13,022. (Round to the nearest dollar.) c. After graduation, what is the amount of the monthly loan repayment in Parts (a) and (b)? Monthly payment with interest repaid each month is $ 207.58. (Round to the nearest cent.) Monthly payment with no interest repaid is $ 270.32.(Round to the nearest cent.) d. How much interest does Sara repay without interest payments during school and with interest payments while in college? The total interest with interest paid while in school is $ 5,065. (Round to the nearest dollar.) The total interest with no interest paid while in school is $ 6,219 (Round to the nearest dollar.) On your student loans, if possible, try to make interest-only payments while you are still in school. If interest is not repaid, it folds into principal after graduation and can cost you hundreds (or thousands) of extra dollars in finance charges. For example, Sara borrowed $5,500 at the beginning of her freshman year and another $4,500 at the beginning of her junior year. The interest rate (APR) is 12% per year, compounded monthly, so Sara's interest accumulates at 1% per month. Sara will repay what she owes as an ordinary annuity over 60 months, starting one month after she graduates in the summer term of her fourth full year of college. Click the icon to view the interest and annuity table for discrete compounding when i = 1% per month. Discrete Compounding; 1= 1% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP P/F F/A P/A A/F 1.0100 0.9901 1.0000 0.9901 1.0000 1.0201 0.9803 2.0100 1.9704 0.4975 1.0303 0.9706 3.0301 2.9410 0.3300 1.0406 0.9610 4.0604 3.9020 0.2463 1.0510 0.9515 5.1010 4.8534 0.1960 1.0615 0.9420 6.1520 5.7955 0.1625 1.0721 0.9327 7.2135 6.7282 0.1386 1.0829 0.9235 8.2857 7.6517 0.1207 1.0937 0.9143 9.3685 8.5660 0.1067 1.1046 0.9053 10.4622 9.4713 0.0956 1.1157 0.8963 11.5668 10.3676 0.0865 1.1268 0.8874 12.6825 11.2551 0.0788 1.1381 0.8787 13.8093 12.1337 0.0724 1.1495 0.8700 14.9474 13.0037 0.0669 Capital Recovery Factor To Find A Given P A/P 1.0100 0.5075 0.3400 0.2563 0.2060 0.1725 0.1486 0.1307 0.1167 0.1056 0.0965 0.0888 0.0824 0.0769 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 1.2324 1.2447 1.2572 1.2697 1.2824 1.3478 1.4308 1.4889 1.6122 1.8167 0.8613 0.8528 0.8444 0.8360 0.8277 0.8195 0.8114 0.8034 0.7954 0.7876 0.7798 0.7419 0.6989 0.6717 0.6203 0.5504 16.0969 17.2579 18.4304 19.6147 20.8109 22.0190 23.2392 24.4716 25.7163 26.9735 28.2432 34.7849 43.0769 48.8864 61.2226 81.6697 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 18.8570 19.6604 20.4558 21.2434 22.0232 25.8077 30.1075 32.8347 37.9740 44.9550 10.0621 0.0579 0.0543 0.0510 0.0481 0.0454 0.0430 0.0409 0.0389 0.0371 10.0354 0.0287 0.0232 0.0205 0.0163 0.0122 | 0.0721 0.0679 0.0643 0.0610 0.0581 0.0554 0.0530 0.0509 0.0489 0.0471 0.0454 0.0387 0.0332 0.0305 0.0263 0.0222