FA 3-3 Student Loans
Authored by Andrew Cox
Mathematics
11th Grade
CCSS covered
Used 61+ times
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This quiz focuses on student loan mathematics, specifically examining the financial calculations involved with federal subsidized and unsubsidized loans, as well as private educational loans. Designed for grade 11 students, the problems require mastery of compound interest formulas, present and future value calculations, and loan amortization principles. Students must understand the distinction between subsidized loans (where the government pays accrued interest during deferment) and unsubsidized loans (where interest capitalizes), calculate monthly payments using loan payment formulas, and determine total interest costs over the life of various loan products. The scenarios progress from basic interest accrual calculations through complex comparisons of payment strategies, requiring students to apply exponential functions, work with decimal representations of percentages, and perform multi-step calculations involving both simple and compound interest across different time periods. Created by Andrew Cox, a Mathematics teacher in the US who teaches grade 11. This comprehensive assessment serves as an excellent tool for reinforcing real-world applications of mathematical concepts that students will encounter in their post-secondary planning. Teachers can deploy this quiz as a formative assessment following instruction on exponential functions and financial mathematics, use individual questions as warm-up problems to reinforce specific calculation skills, or assign it as homework to help students practice applying mathematical formulas to authentic financial scenarios. The quiz also works effectively as a review tool before summative assessments or as part of a broader unit on consumer mathematics and financial literacy. This material directly supports Common Core standards A-SSE.1 (interpreting expressions in context), A-CED.3 (representing constraints with systems of equations), and F-LE.2 (constructing linear and exponential functions), while reinforcing mathematical practices around modeling with mathematics and attending to precision in financial calculations.
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13 questions
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1.
MULTIPLE CHOICE QUESTION
5 mins • 1 pt
Marlie will be starting college next month. She was approved for a 10-year, Federal Unsubsidized student
loan in the amount of $18,800 at 4.29%. She knows she has the option of beginning repayment of the loan
in 4.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%.
How much interest will Marlie accrue during the 4.5-year non-payment period?
$2536.23
$3629.34
$3236.56
$3896.32
Tags
CCSS.7.RP.A.3
2.
MULTIPLE CHOICE QUESTION
5 mins • 1 pt
Marlie will be starting college next month. She was approved for a 10-year, Federal Unsubsidized student
loan in the amount of $18,800 at 4.29%. She knows she has the option of beginning repayment of the loan
in 4.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%.
Marlie has to decide whether she can afford to make interest-only payments for the first
4.5 years or defer all payments for that period of time. If she decides to make no payments
during the 4.5 years, the interest will be capitalized at the end of that period. Suppose Marlie
decides to defer the payments.
What will be the new principal when she begins making loan payments?
$22,429.34
$18,800
$20,000
$18,823.32
Tags
CCSS.7.RP.A.3
3.
MULTIPLE CHOICE QUESTION
5 mins • 1 pt
Marlie will be starting college next month. She was approved for a 10-year, Federal Unsubsidized student
loan in the amount of $18,800 at 4.29%. She knows she has the option of beginning repayment of the loan in 4.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%. Marlie has to decide whether she can afford to make interest-only payments for the first 4.5 years or defer all payments for that period of time. If she decides to make no payments during the 4.5 years, the interest will be capitalized at the end of that period. Suppose Marlie decides to defer the payments.How much interest will she pay over the life of the loan?
$5145.36
$5178.32
$5193.46
$5231.65
Tags
CCSS.7.RP.A.3
4.
MULTIPLE CHOICE QUESTION
5 mins • 1 pt
Marlie will be starting college next month. She was approved for a 10-year, Federal Unsubsidized student
loan in the amount of $18,800 at 4.29%. She knows she has the option of beginning repayment of the loan
in 4.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%.
Suppose Marlie only paid the interest during her 4 years in school and the six-month grace
period. What will she now pay in interest over the term of the loan?
$4789.35
$4123.56
$4258.36
$4352.80
Tags
CCSS.7.RP.A.3
5.
MULTIPLE CHOICE QUESTION
5 mins • 1 pt
Jim’s parents paid for the first three years of his college costs. When he was a college senior, he
was approved for an unsubsidized loan in the amount of $15,200 at a 4.29% interest rate for 10
years.
If he chooses to make interest-only payments until the monthly loan payments are due, for
how long will he be making interest only payments?
4.5 years
1.0 years
2.5 years
1.5 years
Tags
CCSS.7.RP.A.3
6.
MULTIPLE CHOICE QUESTION
5 mins • 1 pt
Jim’s parents paid for the first three years of his college costs. When he was a college senior, he
was approved for an unsubsidized loan in the amount of $15,200 at a 4.29% interest rate for 10
years. What is the total amount of his interest-only payments?
$456.35
$896.25
$563.23
$978.12
Tags
CCSS.7.RP.A.3
7.
MULTIPLE CHOICE QUESTION
5 mins • 1 pt
Jim’s parents paid for the first three years of his college costs. When he was a college senior, he
was approved for an unsubsidized loan in the amount of $15,200 at a 4.29% interest rate for 10
years. If he begins the loan repayment with no interest capitalization because he already paid the
interest when he was in school and during the six-month grace period, how much will he
have paid in interest for this loan by the end of the 10-year loan period?
$3,360
$3,450
$3,520
$3,200
Tags
CCSS.7.RP.A.3
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