Find the total cost of the Subsidized Loan

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Question - If you need to take out a $70,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 7.1%interest for 10 years, a federal unsubsidized loan with 5.9% interest for 10years, or a private loan with 6.0% interest and a term of 16 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized.

-Find the total cost of the Subsidized Loan.

-Find the total cost of the Unsubsidized Loan.

-Find the total cost of the Private Loan.

-Which Loan has the overall lowest cost.

-How much would you save over the other options. The subsidized loan would save you $ ________ over the federal unsubsidized loan and $________ over the private loan.

Reference no: EM132982714

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