FA 3-3 Student Loans

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

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

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

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

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

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

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

Barb is a freshman attending a 4-year college. She has been approved for a $12000 subsidized

federal loan at 4.29% for 10 years. How much will the U.S. Department of Education pick up in

interest costs during her 4.5-year non-payment period?

• $2,316.60

• $2,231.00

• $2,121.00

• $2,323.23

Tags

CCSS.7.RP.A.3

Phil has been accepted into a 2-year Radiology Technician Program at a career school. He has been awarded

a $9000 unsubsidized 10-year federal loan at 4.29%. He knows he has the option of beginning repayment of

the loan in 2.5 years. He also knows that during this non-payment time, interest will accrue at 4.29%.

How much interest will Phil accrue during the 2.5-year non-payment period

• $963.23

• $962.32

• $923.36

• $965.25

Tags

CCSS.7.RP.A.3

Phil has been accepted into a 2-year Radiology Technician Program at a career school. He has been awarded

a $9000 unsubsidized 10-year federal loan at 4.29%. He knows he has the option of beginning repayment of

the loan in 2.5 years. He also knows that during this non-payment time, interest will accrue at 4.29%.

If Phil decides to make no payments during the 2.5 years, the interest will be capitalized at the

end of that period. What will be the new principal when he begins making loan payments?

• $9,789.32

• $9,965.25

• $9,128.48

• $9,145.39

Tags

CCSS.7.RP.A.3