1 Annual borrowing s10,000 = Interest rate = 7% Term 4 Years Borrowing schedule Year Beginning balance Amount of borrowing s10,000 Total amount for interest Interest $10,000 7% Total balance $10,700 $0 $700 1 $1,449 $10,700 S10,000 $20,700 $22,149 2 $10,000 $10,000 3 $22,149 $32,149 S2,250.43 $34,399.43 $44,399 4 34399.43 $3,107.96 $47,507.39 Ans : Amount should pay for borrowing at the end of 4 years $47,507.39 = Using the information form above, if the loans continue to charge 7 % compounded annually and you make 3,600.00 annual payments (300.00 a month) how long will it take to pay off your student loans? 2