complete problems 1-2

2.6 Student Loans - Mortgages -- In-Class Group Worksheet Section: Name: Name: Sienna ross Show your calculations as entered into your calculator for credit! 1. (6 pts) If the principal balance of an unsubsidized student loan is $12,500 and the interest rate is 6.8% annually, how much simple interest (1 = Prt) will accrue in a. One Year? One Day 30-Day Month to the penny: (round this answer to six decimal places) 12500 365.25 = 34. 273135 * 30 1, 026. 69 b. If you start school in August, graduate 3 years and 9 months later, and payments begin 6 months after graduation, how much time will pass while interest is accruing? Number of Full Years: 4 + Number of extra Months: 3 For ease, assuming the extra three months are all 30-day months; how much total interest accrues before payments begin? Round the answer to the nearest dollar. c. For the 10-year student loan we've been working with, determine the principal amount at the time payments begin. (This includes the original amount borrowed, plus the amount of interest that accrues until payments start since the interest was capitalized.) d. Using the formula, determine the monthly payment (to the nearest dollar). P = r = n = t = P () R = (1 - (1+ 7) int e. What is the future value of this capitalized loan (total of all payments)? f. How much interest did you pay on this $12,500 student loan