Claudius took out an unsubsidized stafford loan at the beginning of his six-year college career. the loan had a principal of $4,850, an interest rate of 6.5% compounded monthly, and a duration of ten years. if claudius started paying off the loan when he graduated, what is his monthly payment? round all dollar values to the nearest cent. a. $71.37 b. $81.25 c. $55.07 d. $76.55

the answer is B, just took the test

$81.25

Step-by-step explanation:

This is an example of a compound interest loan.

The first step is to calculate the value of the loan in 10 years time

Using the compound interest formula below, we can calculate that

A = P x (1+r)ⁿ                   where A = the future value of the loan

                                                    P  = present value

                                                    r   =  annual interest rate

                                                    n = tenor of loan which is time in years

To convert the annual interest rate into a compounded monthly interest, we divide it by 12

A = $4,850 x (1 + 0.065/12)¹⁰

  =  $4850 x (1 + 0.0054167)¹⁰

  =  $4850 x (1.0054167)¹⁰

  =  $4850 x 1.05413804

A= $5,112.5695178 ≅ $5,112.57 (nearest cent) which is the value of the loan in 10 years time.

From the question, Claudius starts repayment after graduation from his 6-year college course, so he has just 4 years left to repay his loan

Hence his month repayment in 4 years would be

$5,112.57 / 48 months = $81.25

answer: city needs 2.4 inches of rainfall more to match the record of 40 inches.

step-by-step explanation:

since we have given that

total annual rainfall a city record = 40 inches

this year, total rainfall recorded = 37.6 inches

number of inches of rainfall   is needed to match the record of 40 inches is given by

hence, city needs 2.4 inches of rainfall more to match the record of 40 inches.