Henry wants to avoid interest capitalization on his $7,800 unsubsidized stafford loan. henry will graduate in four years, and the loan has a duration of ten years. the loan has an interest rate of 5.6%, compounded monthly. how much must henry pay every month to avoid interest capitalization? a. $14.56 b. $43.68 c. $36.40 d. $31.20

The correct answer is option C.

Step-by-step explanation:

Henry wants to avoid interest capitalization on his $7,800 unsubsidized Stafford loan. The loan has a duration of ten years.

The loan has an interest rate of 5.6% or 0.056, Monthly rate = 0.056/12

So, the amount Henry should pay every month to avoid interest capitalization is :

= $36.40

Hence, the answer is $36.40

12.4, 12.387, 12.26, 12.252, 6.241, 6.2, 6.015, 6.009, 1.411, 1.2, 1.056, 1.007, 0.31,   0.13, 0.5, 0.04

step-by-step explanation:

ur welcome : )