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6.9 Exercise 7

Avg difficulty 2.5

Denise takes out unsubsidized student loan, in August, in her first year of college for $2,000. She manages an interest rate of 8%. She graduates after her fifth year of college, in May. She does not pay the interest on the loan during her time in college. What is the balance of her first year loan in May of her graduation year?

OpenStax Contemporary Mathematics, 6.9 Understanding Student Loans, exercise 7

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Adapted from Contemporary Mathematics © 2023 Rice University. Licensed under CC BY 4.0. Source: Contemporary Mathematics. Imported at revision fa7c1a1.