Often, through government-supported programs, students may obtain "bargain" interest rates such as 6% or 8% to attend college. Frequently, payments are not due and interest does not accumulate until the student stops attending college. A student has borrowed $42 comma 000 at an annual interest rate of 6.4 %. Calculate the amount of interest due 6 months after the student must begin payments.

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Business

Leah Berger

24 July, 19:56

Often, through government-supported programs, students may obtain "bargain" interest rates such as 6% or 8% to attend college. Frequently, payments are not due and interest does not accumulate until the student stops attending college. A student has borrowed $42 comma 000 at an annual interest rate of 6.4 %. Calculate the amount of interest due 6 months after the student must begin payments.

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Johan Meadows · Answer 1

amount of interest due after 6 month is $1344

Explanation:

given data

borrowed P = $42,000

interest rate = 6.4 % = 0.064

time period = 6 month = 0.5 year

solution

we get here interest amount on 6 month that is express as

interest = principal * rate * time ... 1

put her value and we get

interest = 42,000 * 0.064 * 0.5

interest = $1344

so amount of interest due after 6 month is $1344