loan

Annuity - Additional Practice 1. You acquire a $15000 unsubsidized student loan at 4.2% interest. You will graduate 4 years later a. How much simple interest accumulates while you still in school for an unsubsidized loan? b. if you capitalized the loan, what will be the balance when you graduate? c. years. What is the monthly payment for this loan? After you graduate, you will begin making payments on your loan at 6.8% compounded monthly for 10 d. How much interest will be paid for this loan? e Suppose that you decide not to capitalize the loan: What is the payment for this loan if it is compounded monthly at 6.8% for 10 years? f. How much interest will you pay if the loan is not capitalized? Be careful here. 6. What is the savings if you choose not capitalized over the capitalized loan