You are here:

Advertisement

Helena has taken out a $9,300 unsubsidized Stafford loan to pay for her college education. She plans to graduate in four years. The loan has a duration of ten years and an interest rate of 6.4%, compounded monthly. By the time Helena graduates, how much greater will the amount of interest capitalized be than the minimum amount that she could pay to prevent interest capitalization? Round all dollar values to the nearest cent.

a.

$238.46

b.

$496.00

c.

$595.20

d.

$324.33

The amount she would have to pay is Ai, where A is the original amount of money and i is the interest rate. Since A is $9,300 and i is 6.4%, that is 9,300*0.064 = 595.2.

This means the amount is $595.20. I see that in the list of choices, do you?

Word Problems

Answers by Expert:

I have answered every question that was a story problems that had any relation to math for which an answer existed. I have ever answered some questions which had a vague relation to math, but still related.

My experience is from when I started doing story problems in grade school.
I have been assisting, helping, and bringing smiles to many others ever since.
Are you the next one?
**Publications**

In over 850 questions answered to other users. Maybe you're the next one ...**Education/Credentials**

I received a BA in Mathematical Sciences from OSU and a MS in Mathematics from OSU as well.
**Awards and Honors**

I earned Both my BS degree and MS degree with honors for having such a high grade point average.
**Past/Present Clients**

I have answered hundreds and hundreds of students at OSU in the 80's and over 8,500 questions right here,
but only a little over 850 of them have been word problems.