Results 1 to 2 of 2

Math Help - Borrowing Model

  1. #1
    Newbie
    Joined
    Nov 2010
    Posts
    3

    Borrowing Model

    Need help with this question. I know the answer but I have difficulty understanding how to get it.
    "Suppose that you take out an unsubsidized Stafford loan on Sept 1 before your senior year for $5500 and plan to begin paying it back on Dec 1 after graduation (so you will have had the loan 15 months, including the six month grace period after leaving school). The interest rate is 6.8%. How much will you owe then, and how much of that will be in interet?"
    Answers are 5967.50, 467.50

    I'm pretty sure the formula is I=Prt, but again when I solve for 'I', I dont get 5967.50!
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,080
    Thanks
    66
    Solving for I means solving for the Interest.
    I = 5500 * .068 * 1.25 = 467.50 (1.25 yrs = 15 months)
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Loan borrowing problem...help plz
    Posted in the Business Math Forum
    Replies: 1
    Last Post: March 16th 2010, 06:10 PM
  2. Non-linear process model with Linear measurement model
    Posted in the Advanced Statistics Forum
    Replies: 1
    Last Post: September 1st 2009, 11:32 PM
  3. Replies: 3
    Last Post: April 15th 2009, 01:18 AM
  4. borrowing problem
    Posted in the Algebra Forum
    Replies: 1
    Last Post: September 11th 2008, 08:34 AM
  5. ANother model
    Posted in the Calculus Forum
    Replies: 2
    Last Post: March 5th 2008, 01:56 PM

Search Tags


/mathhelpforum @mathhelpforum