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Please show work on how to get the answers... The answers in the uploaded picture are the correct answers On your student loans, if possible,
Please show work on how to get the answers... The answers in the uploaded picture are the correct answers
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 $5,000 at the beginning of her freshman year and another $4,500 at the beginning of her junior year. The interest rate (APR) is 6% per year, compounded monthly, so Sara's interest accumulates at 0.5% 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 = 0.5% per month. a. How much money does Sara owe upon graduation if she pays off monthly interest during school? Sara owes $ 9500. (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 $ 11425 (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 $ 183.25 (Round to the nearest cent.) Monthly payment with no interest repaid is $ 220.50 (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 $ 3,260. (Round to the nearest dollar.). The total interest with no interest paid while in school is $ 3,753 (Round to the nearest dollar.)Step by Step Solution
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