Huai takes out a $3500 student loan at 6.7% to help him with 2 years of community college. After finishing the 2 years, he transfers to a state university and borrows another $12,500 to defray expenses for the 5 semesters he needs to graduate. He graduates 4 years and 4 months after acquiring the first loan and payments are deferred for 3 months after graduation. The second loan was acquired 2 years after the first and had an interest rate of 7.3% . Find the total amount of interest that will accrue until payments begin.
Huai takes out a $3500 student loan at 6.7% to help him with 2 years of community college. After finishing the 2 years, he transfers to a state university and borrows another $12,500 to defray expenses for the 5 semesters he needs to graduate. He graduates 4 years and 4 months after acquiring the first loan and payments are deferred for 3 months after graduation. The second loan was acquired 2 years after the first and had an interest rate of 7.3% . Find the total amount of interest that will accrue until payments begin.
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 37P
Related questions
Question
Huai takes out a
$3500
student loan at
6.7%
to help him with
2
years of community college. After finishing the
2
years, he transfers to a state university and borrows another
$12,500
to defray expenses for the
5
semesters he needs to graduate. He graduates
4
years and
4
months after acquiring the first loan and payments are deferred for
3
months after graduation. The second loan was acquired
2
years after the first and had an interest rate of
7.3%
. Find the total amount of interest that will accrue until payments begin.
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