Rhett is about to begin college and has received a 10-year $7,500 Federal Direct Unsubsidized Loan with an interest rate of 6.4%. He will be required to begin making payments six months after graduation. If Rhett decides to capitalize the interest accrued from the time he receives the funds until he begins making payment, how much total interest would he pay on this loan? Please round to the nearest cent. a. What is the new Loan Principal after Rhett finishes school and his 6 month grace period?
b. What is the total amount paid by Rhett in the 10 years after graduation and his grace period?
c. How much total interest will he pay on this loan?