amount borrowed $ 89,400 interest rate is 6.31% for a student federal loan 1) multiply the amount borrowed Times the interest rate to find the interest amount. at the principal and interest him out together to find a total of P and I. round to the nearest dollar. repeat this process for each year using the total you found for the next year‘s principal. repeat until you find the amount after 10 years. 
amount borrowed $ 89,400 interest rate is 6.31% for a student federal loan 1) multiply the amount borrowed Times the interest rate to find the interest amount. at the principal and interest him out together to find a total of P and I. round to the nearest dollar. repeat this process for each year using the total you found for the next year‘s principal. repeat until you find the amount after 10 years. 
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 4FPE
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amount borrowed $ 89,400 interest rate is 6.31% for a student federal loan
1) multiply the amount borrowed Times the interest rate to find the interest amount. at the principal and interest him out together to find a total of P and I. round to the nearest dollar. repeat this process for each year using the total you found for the next year‘s principal. repeat until you find the amount after 10 years. 
Transcribed Image Text:Federal Loan Program
Amount Borrowed
Interest Rate for 2017
$89,400
Subsidized Federal Loan
6.31%
e. Multiply the amount borrowed times the interest rate to find the interest
amount. Add the principal and interest amount together to find the total of P
and I. Round to the nearest dollar. Repeat this process for the each year,
using the total you found for the next year's principal. Repeat until you find
the amount after 10 years.
Year Principal
Interest Rate
Interest Amount
Total: Principal and Interest
2.
4
5.
6.
8
9.
10
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