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LAB #5 Situation #1: Student Loans Show ALL your work for this situation, even writing down what you put into your

calculator. The majority of your points will come from your work and your explanation (#3), not your answers. For this situation you are going to calculate how much interest you will have to pay on school loans given a set of situations. Do not round your calculations till the end. Loans you took out to complete my undergraduate degree: 2010-2011: Direct Subsidized Loan $3,250 2011-2012: Direct Subsidized Loan $4,100 2012-2013: Direct Subsidized Loan $700 2012-2013: Direct Unsubsidized Loan $2.000 2012-2013: Direct Subsidized Loan $2,750 2013-2014: Direct Subsidized Loan $5,000 Assume the following: Your unsubsidized loan starts collecting interest the day you take it out. You take out the unsubsidized loan on August 19, 2012 and you graduate on May 15 in 2014. Your subsidized loans collect interest the day you graduate, but the first payment for all the loans above is not due until 6 months after you graduate, on November 19, 2014. Also assume that the interest for all the loans above compounds daily. You can forget about leap year. Given all this information answer the following: On the first day that a payment is due: November 1", 2014 how much interest do you owe above your initial principal? (aka how much interest have your loans collected up to this point....before your first bill is even due?) 2nd question: If the unsubsidized loan was $5,000 how much would this have changed your total interest due in question #1? **Note your principal is different in this question. 3. question: If you wanted to pay off your loans in monthly payments starting on November 15 2014, would calculating your monthly payment be as simple as taking your total in question #1 (principle + interest) and dividing by the number of months you want to pay off your loan in? Example: If I wanted to pay the total amount of my loans off in 5 months, to determine my monthly payment could I do: Total + 5 months = monthly payment

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