THOR gets a subsidized student loan of $8,000 to attend demi-god etiquette school. The school gives him a rate of 3.5% for the loan and the term is 12 years.
a) What will be his monthly payment?
- remember the difference between subsidized and unsubsidized
- on the actual final, you may get either type of loan, so understand
how to alter your calculations depending on which type of loan you get
- remember that for unsubsidized, you are being charged interest during
school AND during the 6 month grace period