Question 22.41

11. Suppose that your federal direct student loans plus accumulated interest total $20,000 at the time that you start repayment, and the interest rate is 4.29%.

  1. What is your monthly payment?
  2. How much will you pay in interest over 10 years?

11.

(a) $205.258 (which would be rounded up to $205.26, with the last payment less)

(b) Ignoring the rounding up: