Evaluate loan balance, Corporate Finance

Consider Gavin, a new freshman who has just received a Stafford student loan and started college.  He plans to obtain the maximum loan from Stafford at the beginning of each year.  Although Gavin does not have to make any payments while he is in school, the 7 percent interest owned (compounded monthly) accrues and is added to the balance of the loan.

292_loan balance.png

After graduation, Gavin gets a six-month grace period.  This means that monthly payments are still not required, but interest is still accruing.  After the grace period, the standard repayment plan is to amortize the debt using monthly payments for 10 years.

a) What will be the loan balance when Gavin graduates after his fourth year of college?

b) Using the standard repayment plan and a 7 percent annual interest rate, compute the monthly payments Gavin owes after the grace period.

c)What is the loan balance six months after graduation?

Posted Date: 2/14/2013 6:19:29 AM | Location : United States





I need urgent help on this assinment please help me out!!!!

 

Posted by | Posted Date: 2/14/2013 6:21:42 AM


Related Discussions:- Evaluate loan balance, Assignment Help, Ask Question on Evaluate loan balance, Get Answer, Expert's Help, Evaluate loan balance Discussions

Write discussion on Evaluate loan balance
Your posts are moderated
Related Questions
Explain what caused "the long boom" in the U.S. and world economy from the early 1980s to its peak in 2006.  Make sure to mention, with a few key facts in each case, the role playe

It is given that company A will acquire company B with shares of common stock. Present earnings of A is rs. 20 million and of company B is rs. 5 million. Earning price per share of

discuss in detail various sources ffom wherebabks can borrow funds within India

#Minimum 100 words accepted#

A firm announces its intent to undertake a levered recapitalization, issuing debt to repurchase a fraction of the outstanding common stock. Upon the announcement, its stock price

I need help in Logit using Stata I am very new in that and my supervisor wants me to use panel data ... which model is best for me and why? no idea could you help me...

1. Calculate the HPY on a bond that is currently selling for 103-25 (priced as % of 100% par, in 32nds), has 8 years left to maturity, carries a 7% coupon (paid semiannually), coup

Question 1: i) Each of the following statements has been put forward as an explanation of determinants of exchange rate: a) ‘the increase in the value of a currency is becau


corporate finance, Financial Accounting Calculate the market value of Renowned Cola''''s debt at year-end 2005. What is the book value of debt? Why do usually use market or book va