Question 21.31

1. In Example 2 on page 871, we considered a private student loan at 6.49%, but the rate for such a loan could have been as high as 12.99%. Under the same circumstances as in Example 1 ($10,000 principal, interest-only repayment), and at the higher rate, how much interest would you pay over 51 months of deferred payments on the principal?

1.