You are graduating in May 2020 with a B.S. and want to attend graduate school full...

You are graduating in May 2020 with a B.S. and want to attend graduate school full time for two years for an MBA. Though scholarships, support from your parents, and savings, you don’t have any debt for your undergraduate education, and you've agreed to pay for graduate school on your own. You estimate that you will need to borrow about $40,000 in each of the next two years: $40,000 in August 2020 and $42,000 in August 2021. The term of each loan will be 15 years, paid monthly. Your first payment will be due October 1, 2020 and the first payment of the second loan will be due October 2, 2021. You’ve researched student loans and found the following rates that are guaranteed not to be any higher over the next 20 years: Direct unsubsidized loans – capped at $20,500 @6.08% for fifteen years Direct PLUS loans @ 7.08% for fifteen years There are also origination fees – that are subtracted from the loan amount you receive but does not affect the principal or monthly payment. The rates are: Direct unsubsidized loans: 1.059% Direct PLUS loans: 4.236% Question 1 1 Point How much money do you expect to receive in August 2020? Question 2 1 Point How much money do you expect to receive in August 2021? Question 3 1 Point What will be the remaining principal in October 2020? Question 4 1 Point What will be the remaining principal in November 2021? Question 5 1 Point What is the total monthly payment in August 2020? Question 6 1 Point What is the total monthly payment in July 2025? Question 7 1 Point What is the remaining principal in August 2028? Question 8 1 Point How much do you expect to pay in total for both loans? Question 9 1 Point What is the effective simple interest rate for the Direct unsubsidized loans: (interest + Origination fees)/(Loans)? Question 10 1 Point What is the effective simple interest rate for the Direct PLUS loans (interest + Origination fees)/(Loans)

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You are graduating in May 2020 with a B.S. and want to attend graduate school full time for two years for an MBA. Though scholarships, support from your parents, and savings

ekkarill92 answered 7 months ago

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