Asked by Monica Guzman on May 26, 2024
Verified
Kenise will begin college as a freshman next fall and has received a 10-year $5,500 Federal Direct Unsubsidized Loan with an interest rate of 6.8%.She will be required to begin making payments six months after graduation.How much interest will accrue while she is still in school and over the six-month grace period?
Federal Direct Unsubsidized Loan
A federal student loan where the borrower is responsible for paying all the interest, regardless of the loan's status.
Interest Rate
The percentage of a sum of money charged for its use, often expressed annually.
- Determine monthly periodic rates and the aggregate interest on diverse loans.
- Calculate the cumulative payments and interest applicable to loans and installment arrangements.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
Find the interest by using the simple interest formula for the 4 years plus six-month grace period. 
Learning Objectives
- Determine monthly periodic rates and the aggregate interest on diverse loans.
- Calculate the cumulative payments and interest applicable to loans and installment arrangements.