Sandra will be transferring from a community college to a university in the fall.

She has calculated that she will need to take out a $35,500 loan for the three

years she will spend at the university. She was able to secure a loan at 4.25%

annual interest rate. While she is in school she does not plan on making any

payments on her loan but interest will still be accruing over this time period.

Answer the following questions.

(a) After three years what is the amount that Sandra will have to repay?

(b) If she plans on paying the loan off in 7 years after the 3 years spent in

college how much should her monthly payment be?

(c) What was the total cost of the loan?

Please use formula given, and please write it out clearly, thank you.

- Tools Thu 5, Window Help 41% % 42%D Loans Class Notes.pdf (page 1 of 5) Q Search Loans Loan Formula d(1 - (1 + D)-Nk) P = T k Po is the balance in the account at the beginning (the principal, or amount of the loan) d is your loan payment (your monthly payment, annual payment, etc) r is the annual interest rate (in decimal form. Example: 5% = 0.05) k is the number of compounding periods in one year. N is the length of the loan, in years 9 ? ? 0 g otv A MacBook Air SO 8 bu 9 546 2