When Brian had 2 years left in college, he took out a student loan for $14.505. The loan has an annual interest rate of 7.8%. Brian graduated 2 years after acquiring the loan and began repaying the loan immediately upon graduation According to the terms of the loan, Brian will make monthly payments for 10 years after graduation. During the 2 years he was in school and not making payments, the loan accrued simple interest. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financat formulas: 5 ? (a) If Brian's loan is subsidized, find his monthly payment. Subsidized loan monthly payment: s[ (b) If Brian's loan is unsubsidized, find his monthly payment. Unsubsidized loan monthly payment:

Answers

Answer 1

Answer:

Final answer:

For a subsidized Loan Payment Calculation, Brian's monthly payment will be approximately $170.94 and for an unsubsidized loan, the monthly payment will increase to $192.90Correct options:

(a) Subsidized loan monthly payment: $190.76

(b) Unsubsidized loan monthly payment: $215.77

Explanation:

The subject of this question is a mathematical calculation of loan payments, under subsidized and unsubsidized conditions. Brian took a loan of $14,505 in college with an annual interest rate of 7.8%.

Subsidized loan calculation: As the loan is subsidized, the interest does not accrue during Brian's time in college. Hence, the total loan amount remains $14,505. Using standard formulae, we find that the monthly payment with an interest rate of 7.8% over 10 years amounts to approximately $170.94.

Unsubsidized loan calculation: In this case, interest does accrue during Brian's time in school. Hence, the total amount due at the time of graduation will be $14,505 + ($14,505 * 0.078) * 2 = $16,467.78. Using the same formula as above, we find the monthly payment over 10 years is approximately $192.90.Correct options:

(a) Subsidized loan monthly payment: $190.76

(b) Unsubsidized loan monthly payment: $215.77

Learn more about Loan Payment Calculation

brainly.com/question/31811446

#SPJ11

Answer 2

Answer:

Answer:

(a) If Brian's loan is subsidized, the interest on the loan does not accrue while he is in school. Therefore, the loan amount of $14,505 remains the same throughout the 2 years he is in school.

To find Brian's monthly payment after graduation, we need to calculate the monthly payment for a loan of $14,505 at an annual interest rate of 7.8% for a term of 10 years (120 months).

To calculate the monthly payment, we can use the formula for the monthly payment on a loan:

Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))

First, let's calculate the monthly interest rate. The annual interest rate of 7.8% needs to be converted to a decimal and divided by 12 to get the monthly interest rate:

Monthly interest rate = 7.8% / 12 = 0.065

Next, let's substitute the values into the formula:

Monthly payment = (14,505 * 0.065) / (1 - (1 + 0.065)^(-120))

Calculating this expression will give us the subsidized loan monthly payment.

(b) If Brian's loan is unsubsidized, the loan will accrue simple interest during the 2 years he is in school. To find the monthly payment for an unsubsidized loan, we need to calculate the interest that accrued during those 2 years and add it to the loan amount before using the formula for the monthly payment.

To calculate the interest that accrued during the 2 years, we can use the formula:

Interest = Loan amount * Annual interest rate * Time

Substituting the values, we get:

Interest = 14,505 * 0.078 * 2

Calculating this expression will give us the interest accrued.

To find the total loan amount after the 2 years, we add the interest accrued to the original loan amount:

Total loan amount = 14,505 + interest accrued

Then, we can use the formula for the monthly payment as explained in part (a) to calculate the unsubsidized loan monthly payment:

Monthly payment = (Total loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))

Calculating this expression will give us the unsubsidized loan monthly payment.

Explanation:

MARK ME BRAINLIST

Related Questions

Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, and that 2018 year-end bonuses to employees will total $1290000. In Bonita's interim income statement for the six months ended June 30, 2018, what is the total amount of expense relating to these two items that should be reported?
What is the general industry standards also called?
If the price of butter increases, then the demand for margarine will likely _____. increase decrease
Trent is having trouble answering some of the questions the interviewer is asking him. Trent could have prevented this by:-bringing a portfolio-preparing questions to ask the interviewer-practicing interviewing with a friend
Explain 4 disadvantages of state owned entreprises

Jessica sells an average of 10 cars a week, earning $300 per sale. Each week, her average earning is

Answers

300 times 10 which equals 3000

She earns $3000 per week.

When Beck joined his uncle's oil exploration company in east Texas, he was given several hundred shares of stock in the firm, and was officially made a partner. The firm's accountant explained that the company paid taxes the same way as regular partnerships, by passing the profits through to each partner. Beck could purchase more shares of the company on a public stock exchange, as long as someone was willing to sell his/her shares. This firm was likely a special form of ownership called a:

Answers

Answer: Master limited partnership

Explanation:

A master limited partnership also referred to as a MLP, is known as a limited partnership which is publicly traded on an exchange. A Master Limited Partnership tends to combine the tax benefits or advantages from a limited partnership with its liquidity that are the publicly traded securities such as stocks and bonds offer. A MLP tends to pays taxes like every other partnerships, thus by passing profits through to individual, and also accounting for these profits on owner's tax return.

The lower the __________, the less interest you will pay.a. credit limit.
c. APR.
b. incentive.
d. grace period

Answers

The lower the grace period the less interest you will pay. Grace period is the span of time that you will be paying your loan or debt. Ofcourse the longer the time span the bigger the interest you will pay since it will grow every month based on the contract

Answer:

It is APR.

Explanation:

the dude who said grace period is stupid

To protect consumers, the SEC requires brokers and dealers to information about securities. True or False

Answers

Answer;
The above statement is true;

To protect consumers, the SEC requires brokers and dealers to reveal information about securities.

Explanation;
The objective of the SEC (securities and Exchange Commission) is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. they also protect consumers by requiring brokers and dealers to reveal information about securities.

SEC requires brokers and dealers to reveal information about securities to protect consumers, the statement is true.

What is SEC?

SEC stands for the securities and exchange commission of the United States, governing in the cases of misconduct in the financial clauses of business by sharing false information or involving in fraud.

SEC aims to protect investors by enforcing strict laws on securities and punishing the violators of the law. They help in supervising the securities markets and organizations to ensure that fair and honest treatment is received by investors.

Learn more about SEC, here:

brainly.com/question/369061

#SPJ5

Tools can be used safely for jobs that they were not designed to do. True or False

Answers

The answer would be false.

False Using tools which are designed to do one work function cannot be used to do another as they may break, slip off, catch fire or spring apart causing injuries or property damage.

Randy works 50 weeks a year, averaging $500 a week in wages. He is offered a salaried position at $27,500 a year. If he accepts it, he will make ______

Answers

$2,500 more than before

2,500 would be the answer hope this helps

Other Questions

Group norms are _____________________.a. general, informal standards that determine consequences for breaking rules b. general, informal standards for appropriate group behavior c. general, formalized standards for appropriate group behavior d. general, formalized standards that determine consequences for breaking rules

Assume you are a manager in one of the branches of the 7-Eleven company and a local bakery is offering to sell some kinds of bread in your branch. The bakery is claiming more than 70% of people living

The Natural rate of unemployment is: A. Structural unemployment rate plus frictional unemployment rate. B. The actual rate minus the cyclical rate C. A and B Leaning towards A

If GDP calculations included measurements of pollution and environmental damage, GDP values would most likely be A. unchanged from their values without these measurements. B. greater than their values without these measurements. C. meaningless, since GDP values without these measurements would no longer be of value. D. less than their values without these measurements