Answer:
The amount in interest accruable to the U.S. Department of Education after 4.5 years is $2,882.33
Step-by-step explanation:
The given parameters are;
The amount, P of subsidized federal loan Barb has been approved for = $12,000
The interest rate at which the loan was approved, r = 4.29%
The duration of the loan = 10 years
The interest after 4.5 years is given as follows;
[tex]A = P \times \left (1 + \dfrac{r}{n} \right ) ^{n \cdot t}[/tex]
Where;
A = The total amount of the loan plus interest after a given time period
n = The number of compounding of the interest per annum
Plugging in the values, we get;
[tex]A = 12,000 \times \left (1 + 0.049 \right ) ^{4.5} \approx 14,882.33[/tex]
The interest, i, is therefore given as follows;
i = A - P = 14,882.33 - 12,000 = 2,882.33
The interest, i after 4.5 years = $2,882.33
The amount in interest accruable to the U.S. Department of Education after 4.5 years = $2,882.33.
