You have a student loan of $20,000. since it is not a federally subsidized loan, it will generate interest over the course of 4 years.

Question

Let’s say you get a rate of 1% applied monthly. Show the calculation you will do to find how much you will owe by the time you graduate

Answer 1

The interest that you will owe by the time of graduation would be:

20,000 x 0.01 x (4x12) = $9,600

The total of principal amount plus interest that you will owe:

20,000 + 9,600 = $29,600