Questions: Subsidized Student Loan (determine the monthly payment required for a 10-year loan) Unsubsidized Student Loan (determine the monthly payment required for a 10-year loan that accrues simple interest while in school for 4 years) Initial principal amount to repay (P) 32,740.00 Your APR (i) 9.15% Number of years while in school Additional interest accrued while in school 11982.84 44722.84 New principal amount to repay (P) Number of payments per year (n) 12 Number of years (t) 10 The monthly loan payment (PMT) based on the initial principal The monthly loan payment (PMT) based on the new principal amount Total amount paid on the loan Total amount paid on the loan Interest paid on loan Interest paid on the loan (including the interest accrued while in school)

Subsidized Student Loan (determine the monthly payment required for a 10-year loan) Unsubsidized Student Loan (determine the monthly payment required for a 10-year loan that accrues simple interest while in school for 4 years) Initial principal amount to repay (P) 32,740.00 Your APR (i) 9.15% Number of years while in school Additional interest accrued while in school 11982.84 44722.84 New principal amount to repay (P) Number of payments per year (n) 12 Number of years (t) 10 The monthly loan payment (PMT) based on the initial principal The monthly loan payment (PMT) based on the new principal amount Total amount paid on the loan Total amount paid on the loan Interest paid on loan Interest paid on the loan (including the interest accrued while in school)
Transcript text: Subsidized Student Loan (determine the monthly payment required for a 10-year loan) Unsubsidized Student Loan (determine the monthly payment required for a 10-year loan that accrues simple interest while in school for 4 years) Initial principal amount to repay (P) $32,740.00 Your APR (i) 9.15% Number of years while in school Additional interest accrued while in school 11982.84 44722.84 New principal amount to repay (P) Number of payments per year (n) 12 Number of years (t) 10 The monthly loan payment (PMT) based on the initial principal The monthly loan payment (PMT) based on the new principal amount Total amount paid on the loan Total amount paid on the loan Interest paid on loan Interest paid on the loan (including the interest accrued while in school)
failed

Solution

failed
failed

Solution Steps

Solution Approach
  1. To determine the monthly payment for a subsidized student loan, use the formula for an amortizing loan: \[ PMT = \frac{P \times i}{1 - (1 + i)^{-n \times t}} \] where \( P \) is the principal, \( i \) is the monthly interest rate, \( n \) is the number of payments per year, and \( t \) is the number of years.
  2. For the unsubsidized student loan, first calculate the new principal amount by adding the additional interest accrued while in school to the initial principal. Then, use the same formula to calculate the monthly payment based on this new principal amount.
Step 1: Calculate Monthly Payment for Subsidized Loan

To find the monthly payment \( PMT \) for the subsidized student loan, we use the formula: \[ PMT = \frac{P \times i}{1 - (1 + i)^{-n \times t}} \] where:

  • \( P = 32740.00 \)
  • \( i = \frac{0.0915}{12} = 0.007625 \)
  • \( n = 12 \)
  • \( t = 10 \)

Substituting the values, we calculate: \[ PMT = \frac{32740.00 \times 0.007625}{1 - (1 + 0.007625)^{-120}} \approx 417.40 \]

Step 2: Calculate New Principal for Unsubsidized Loan

The new principal amount \( P' \) for the unsubsidized loan is calculated by adding the additional interest accrued while in school to the initial principal: \[ P' = 32740.00 + 11982.84 = 44722.84 \]

Step 3: Calculate Monthly Payment for Unsubsidized Loan

Using the same formula for the unsubsidized loan: \[ PMT' = \frac{P' \times i}{1 - (1 + i)^{-n \times t}} \] Substituting the new principal: \[ PMT' = \frac{44722.84 \times 0.007625}{1 - (1 + 0.007625)^{-120}} \approx 570.17 \]

Final Answer

The monthly payment for the subsidized loan is approximately \( 417.40 \) and for the unsubsidized loan is approximately \( 570.17 \).

\[ \boxed{PMT_{\text{subsidized}} \approx 417.40, \quad PMT_{\text{unsubsidized}} \approx 570.17} \]

Was this solution helpful?
failed
Unhelpful
failed
Helpful

Questions asked by other users

failedAnswered
A long inside lag is considered more of a problem for U.S. policy, whereas a long outside lag is considered more of a problem for U.S. policy. active; passive fiscal; monetary monetary; fiscal passive; active
failedAnswered
You roll a six-sided die. Find the probability of each of the following scenarios. (a) Rolling a 6 or a number greater than 3 (b) Rolling a number less than 4 or an even number (c) Rolling a 2 or an odd number (a) P(6 or number >3) = (Round to three decimal places as needed.)
failedAnswered
Report content error Study mode Question 26 For which reason would the nurse use sandbags to help position a patient? To prevent pressure ulcers To prevent dorsiflexion of the wrist To maintain dorsiflexion of the feet To prevent external rotation of hips and legs Confident Not Sure
failedAnswered
Listed below are pulse rates (beats per minute) from samples of adult males and females. Does there appear to be a difference? Find the coefficient of variation for each of the two samples; then compare the variation. Male 86 The coefficient of variation for the female pulse rates is 82.3 %. (Type an integer or decimal rounded to one decimal place as needed.) Compare the variation.
failedAnswered
The nurse is caring for a client in the emergency department who is being treated for extensive soft tissue injuries. Which action is the nursing is most appropriate to support the client's ability to disclose an experience of domestic violence? (A) Talking with the client without her spouse present. (B) Having another healthcare professional present during the nurse's interview (C) Placing responsibility to initiate discussion of violence on the client (D) Providing a safe, supportive, and nonintimidating environment