Help me calculate my total debt math majors!
Posted: Wed Jul 25, 2012 3:31 pm
If i were to borrow 15K for the direct unsubsidized loan my first year at 6.8%. How much will I have to pay at the end of the 3 year?. Assuming no capitalization meaning I pay off the interest as it accrues. My thought is like this. I=PRT. I=15K * 6.8%* 3years. So i pay $3,060.
However, what happens if I borrow 20K my 2nd year and another 20K 3rd year. Assuming still unsubsidized loan at 6.8%
2nd year: I=20K * 6.8% * 2years= 2720
3rd year: I=20K * 6.8% * 1 year=1360.
In short, my total interest for 3 years would be: $7,140 assuming no capitalization.
Therefore, my total debt after 3 years would be 15K+20K+20K+7,140= $62,140.
Is my math correct?
Thanks
However, what happens if I borrow 20K my 2nd year and another 20K 3rd year. Assuming still unsubsidized loan at 6.8%
2nd year: I=20K * 6.8% * 2years= 2720
3rd year: I=20K * 6.8% * 1 year=1360.
In short, my total interest for 3 years would be: $7,140 assuming no capitalization.
Therefore, my total debt after 3 years would be 15K+20K+20K+7,140= $62,140.
Is my math correct?
Thanks