Martina’s grandparents paid for the first 3 years of her college costs. As a senior, she was approved for a federal unsubsidized loan in the amount of $9,300 at a 4.29% interest rate for 10 years.
a. If she chooses to make interest-only payments until the monthly loan payments are due, for how long will she be making interest-only payments?
b. What would be the total amount of her interest-only payments?
c. If she begins her loan repayment with no interest capitalization since she already paid the interest when she was in school and during the 6-month grace period, how much will she have paid in interest for this loan by the end of the 10-year loan period?