At the beginning of each of her four years in college, Miranda took out a new Stafford loan. Each loan had a principal of $5,500, an interest rate of 7.5% compounded monthly, and a duration of ten years. Miranda paid off each loan by making constant monthly payments, starting with when she graduated. All of the loans were subsidized. What is the total lifetime cost for Miranda to pay off her 4 loans?

Question

Braelyn

Mathematics

11 October, 23:10

At the beginning of each of her four years in college, Miranda took out a new Stafford loan. Each loan had a principal of $5,500, an interest rate of 7.5% compounded monthly, and a duration of ten years. Miranda paid off each loan by making constant monthly payments, starting with when she graduated. All of the loans were subsidized. What is the total lifetime cost for Miranda to pay off her 4 loans?

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Jaylyn Chavez · Answer 1

You are given the principal loan of $5,500, an interest rate of 7.5% compounded monthly, and a duration of ten years. You are asked to find the total lifetime cost for Miranda. You need a compound inerest equation to solve this problem. The answer is 11,616.36.