Questions: MAT130 Worksheet 3.4 Name: Morgan Bork 1. Pick a program from the JC Estimated Cost by Program website:https://www.iccmi.edu/financial-aid/estimated-cost-by. program / state the program and the cost of the program. Program: Cost: 2. Calculate the interest that will accrue while you are in school. (Assume you complete your INTEREST RATES Loan Type First Disbursement Date Fixed Interest Rate Direct Subsidized Unsubsidized 07 / 01 / 23-06 / 30 / 24 5.50 % Direct PLUS 07 / 01 / 23-06 / 30 / 24 8.05 % Direct Subsidized Unsubsidized 07 / 01 / 22-06 / 30 / 23 4.99 % Direct PLUS 07 / 01 / 22-06 / 30 / 23 7.54 %

Solution Steps

To calculate the interest that will accrue while you are in school, you need to determine the principal amount (cost of the program) and the interest rate applicable during your study period. Since the degree is completed in two years and payments are deferred for 6 months, calculate the interest for 2.5 years using the appropriate interest rate.

Let the principal amount (cost of the program) be \( P = 20000 \). The interest rate for Direct Subsidized & Unsubsidized loans is given as \( r = 5.50\% = 0.055 \).

The total time period for which the interest will accrue is \( t = 2.5 \) years (2 years in school plus 0.5 years of deferment).

The formula for calculating the accrued interest \( I \) is given by: \[ I = P \cdot r \cdot t \] Substituting the values: \[ I = 20000 \cdot 0.055 \cdot 2.5 = 2750.0 \]

Final Answer