Question

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
Please explain.

Answer 1

Your correct answer should be D

Answer 2

d. pretty sure!! hope this helped!!