During four years of college, Nolan MacGregor's student loans are $4000, $3500, $4400, and $5000 for...

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During four years of college, Nolan MacGregor's student loansare $4000, $3500, $4400, and $5000 for freshman year through senioryear, respectively. Each loan amount gathers interest of 1.9%,compounded quarterly, while Nolan is in school and 3%, compoundedquarterly, during a 6-month grace period after graduation.
(a) What is the loan balance after the grace period? Assume thefreshman year loan earns 1.9% interest for 3/4 year during thefirst year, then for 3 full years until graduation. Make similarassumptions for the loans for the other years. (Round your answerto the nearest cent.) the answer is not 17.66 or 17.67 or21828.40
(b) After the grace period, the loan is amortized over the next10 years at 3%, compounded quarterly. Find the quarterly payment.(Round your answer to the nearest cent.)
$ the answer is not 21421.39 or 1,054
(c) If Nolan decides to pay an additional $70 per payment, howmany payments will amortize the debt? (Round your answer up to thenext whole number.)
the answer is 35 quarters
(d) How much will Nolan save by paying the extra $70 with thenumber of payments from part (c)? (Round your answer to the nearestcent.)
$ the answer isnt 784.84 or 1124 or 5270

Answer & Explanation Solved by verified expert

4.4 Ratings (663 Votes)

a Loan Value at the end of Grace period will be 1765296 Year 1 Loan Year 2 Loan Year 3 Loan Year 4 Loan Total 4000 3500 4400 5000 Quarterly Interest 0003 0003 0003 0003 No of quarters 15 11 7 3 Future See Answer

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