The National Direct Student Loan (NDSL) program allows college students to borrow funds from the federal government.
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a. Assuming that the student elects the maximum payment period, what are the uniform annual loan repayments? (Assume all repayments occur at the end of the year.)
b. If the rate of interest on savings deposits is 6 percent, what is the minimum amount the student has to have in a bank account one year after graduation to make the loan payments calculated in ( a )?
c. Are recipients of the NDSL program receiving a subsidy? If so, what is the present value of the subsidy when the loan is taken out?
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Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
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