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In: Finance

When Amy had 2 years left in college, she took out a student loan for $14,765....

When Amy had 2 years left in college, she took out a student loan for $14,765. The loan has an annual interest rate of 8.1%. Amy graduated 2 years after acquiring the loan and began repaying the loan immediately upon graduation. According to the terms of the loan, Amy will make monthly payments for 4 years after graduation. During the 2 years she was in school and not making payments, the loan accrued simple interest.

(a)If Amy's loan is subsidized, find her monthly payment.

Subsidized loan monthly payment: $

(b)If Amy's loan is unsubsidized, find her monthly payment.

Unsubsidized loan monthly payment: $

Solutions

Expert Solution

Subsidized loan will not have accrued interest and unsubsidized will have.

jeff jeffy answered 2 years ago
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