You are graduating in May 2020 with a B.S. and want to attendgraduate school full time for two years for an MBA. Thoughscholarships, support from your parents, and savings, you don’thave any debt for your undergraduate education, and you've agreedto pay for graduate school on your own. You estimate that you willneed to borrow about $40,000 in each of the next two years: $40,000in August 2020 and $42,000 in August 2021. The term of each loanwill be 15 years, paid monthly. Your first payment will be dueOctober 1, 2020 and the first payment of the second loan will bedue October 2, 2021. You’ve researched student loans and found thefollowing rates that are guaranteed not to be any higher over thenext 20 years: Direct unsubsidized loans – capped at $20,500 @6.08%for fifteen years Direct PLUS loans @ 7.08% for fifteen years Thereare also origination fees – that are subtracted from the loanamount you receive but does not affect the principal or monthlypayment. The rates are: Direct unsubsidized loans: 1.059% DirectPLUS loans: 4.236% Question 1 1 Point How much money do you expectto receive in August 2020? Question 2 1 Point How much money do youexpect to receive in August 2021? Question 3 1 Point What will bethe remaining principal in October 2020? Question 4 1 Point Whatwill be the remaining principal in November 2021? Question 5 1Point What is the total monthly payment in August 2020? Question 61 Point What is the total monthly payment in July 2025? Question 71 Point What is the remaining principal in August 2028? Question 81 Point How much do you expect to pay in total for both loans?Question 9 1 Point What is the effective simple interest rate forthe Direct unsubsidized loans: (interest + Originationfees)/(Loans)? Question 10 1 Point What is the effective simpleinterest rate for the Direct PLUS loans (interest + Originationfees)/(Loans)