Question

core: 0 of 2 pts 7 of 7 (3 complete) HW Score: 21.48%, 1.93 of 9 roblem P7-10 (similar to) Question Help What is the total amount Bae will have to repay for his $24.764 student loan if the interest rate is 7 percent over 10 years? What is the total amount he would have to repay if the $24.764 was a grant instead of a loan? Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table The total amount Bae will have to repay for his student loans is $(Round to the nearest cent) Enter your answer in the answer box and then click Check Answer 1 part remaining O search a

Answer 1

1. Student Loan Amount = $24764

Interest rate = 7%

Years = 10

Total Amount on loan to be paid = Present Value * ( 1 + Rate) ^ Number of period

= 24764 * ( 1 + 7%)^10

= 24764 * 1.96715

Amount repaid on loan = $48714.502

2. In case of Grant, there will be no payment made.