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Olivia has taken out a $13,100 unsubsidized Stafford loan to pay for her college education. She plans to graduate in four years. The loan has a duration of ten years and an interest rate of 7.6%, compounded monthly. By the time Olivia graduates, how much greater will the amount of interest capitalized be than the minimum amount that Olivia could pay to prevent interest capitalization

Respuesta :

TonieCee

Answer:

First, we add the options:

A. $354.22

B. $995.60

C. $477.27

D. $654.45

The correct option is D. $654.45

Explanation:

We use the formula:

A = P(1 + r/n)^nt

Where:

A = final amount

P = initial principal ($13,100)

r = interest rate (7.6% or 0.076)

n = number of times interest applied per time period

t = number of time period elapsed.

13100(1+0.076/12)^(12*4) - 13100 = 4636.85 

13100(0.076/12) x 4 x 12 = 3982.40 

Answer = 4636.85 - 3982.40 = 654.45 

emmaoconnor90

Answer:

there right

Explanation: