Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Antonio has just graduated from four years of college. For the last two years, he took out a Stafford loan to pay for his tuition. Each loan had a duration of ten years and interest compounded monthly. Antonio will pay each of them back by making monthly payments, starting as he graduates. Antonio’s loans are detailed in the table below. Year Loan Amount ($) Interest Rate (%) Subsidized? Junior 5,894 6. 9 Y Senior 5,258 7. 5 N Once all of his loans are paid off, what will Antonio’s total lifetime cost be? Round all dollar values to the nearest cent. A. $16,246. 80 b. $17,804. 40 c. $7,593. 16 d. $9,874. 76 Please select the best answer from the choices provided A B C D.

Sagot :

shubhamchouhanvrVT

Antonio’s total lifetime cost will be $11680.99 after calculating all loans

What will be Antonio’s total lifetime cost?

Given that

Loan Amount ($)

5,894$

5,258$

Interest Rate (%)

6.9%

7.5%

Now for the loan amount 5,894$ at 6.9% interest, the amount will be

[tex]A=P(1+\dfrac{r}{h} )^{n\times t}[/tex]

[tex]A=5894(1+\dfrac{0.069}{12} )^{12\times 10}[/tex]

[tex]A=5894\times(1.00575)x^{120} =11727.76[/tex]

Now for the loan amount 5.258$ at 7.5% interest, the amount will be

[tex]A=5258(1+\dfrac{0.075}{12} )^{12\times 10}[/tex]

[tex]A=5258\times2.1120=111105.23[/tex]

So the total lifetime cost will be

[tex]=11727.76-5894+111105.23-5258=11680.99[/tex]

Thus Antonio’s total lifetime cost will be $11680.99 after calculating all loans

To know more about Compound interest follow

https://brainly.com/question/24924853

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.