Sunday, December 15, 2013

Loan Project

A=P(1+r)^t

Subsidized loan - A loan that is available to undergraduate students with financial need. The government pays the interest on while the student is in school.

Unsubsized loan - A loan that is available to undergraduate students with no financial need. The student pays the interest from the time the loan is dispersed.

Bank loan - A loan obtained by an alternative source than the government.

Interest rates:
Subsidized and Unsubsized = 3.86%
Bank loans - varies

5817 = 5000(1+.0386)^4
5601 = 5000(1+.0386)^3
5393 = 5000(1+.0386)^2
5193 = 5000(1+.0386)^1

22,004(1.0386)^10 yrs = 32,135.482
                                     120 months  =  267.80 per month

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