10
QuizMultiple Choice

Student Loans

Question 10 of 10 • SEPHS - BUS 240 - Personal Finance (Summer)

Sebastian has just graduated after four years of university. He took out an unsubsidized Stafford loan worth $8,180 to help pay for his tuition. The loan has a duration of ten years. If the loan has an interest rate of 5.3%, compounded monthly, how much interest capitalization has occurred by the time he graduated? Round all dollar values to the nearest cent. a. $721.93 b. $842.25 c. $1,926.97 d. $1,734.24 Please select the best answer from the choices provided

Answer
A
A
B
B
C
C
D
D