During four years of college, Nolan MacGregor's student loans are $3,900, $4,400, $3,900, and $3,700 for freshman year through senior year, respectively. Each loan amount gathers interest of annual rate of 1%, compounded quarterly while Nolan is in school; and an annual rate of 3%, compounded quarterly during a 6-month grace period after graduation. Assume the freshman year loan earns an annual rate of 1% interest for year during the first year, then for 3 full years until graduation. Make similar assumptions for the loans for the other years. After the grace period, the loan is amortized over the next 10 years at an annual rate of 3%, compounded quarterly. Suppose Nolan decides to pay an additional $90 above the calculated quarterly payment, how much will Nolan save by paying the extra $90 with each payment? Round your answer to the nearest cent.
A)$4,084.39
B)$2,084.39
C)$1,284.39
D)$37,865.32
E)$484.39

Question

During four years of college, Nolan MacGregor's student loans are $3,900, $4,400, $3,900, and $3,700 for freshman year through senior year, respectively. Each loan amount gathers interest of annual rate of 1%, compounded quarterly while Nolan is in school; and an annual rate of 3%, compounded quarterly during a 6-month grace period after graduation. Assume the freshman year loan earns an annual rate of 1% interest for  year during the first year, then for 3 full years until graduation. Make similar assumptions for the loans for the other years. After the grace period, the loan is amortized over the next 10 years at an annual rate of 3%, compounded quarterly. Suppose Nolan decides to pay an additional $90 above the calculated quarterly payment, how much will Nolan save by paying the extra $90 with each payment? Round your answer to the nearest cent. ​
A)$4,084.39 
B)$2,084.39 
C)$1,284.39 
D)$37,865.32 
E)$484.39

Quizplus · Accepted Answer

The Answer of During four years of college, Nolan MacGregor's student loans are $3,900, $4,400, $3,900, and $3,700 for freshman year through senior year, respectively. Each loan amount gathers interest of annual rate of 1%, compounded quarterly while Nolan is in school; and an annual rate of 3%, compounded quarterly during a 6-month grace period after graduation. Assume the freshman year loan earns an annual rate of 1% interest for  year during the first year, then for 3 full years until graduation. Make similar assumptions for the loans for the other years. After the grace period, the loan is amortized over the next 10 years at an annual rate of 3%, compounded quarterly. Suppose Nolan decides to pay an additional $90 above the calculated quarterly payment, how much will Nolan save by paying the extra $90 with each payment? Round your answer to the nearest cent. ​
A)$4,084.39 
B)$2,084.39 
C)$1,284.39 
D)$37,865.32 
E)$484.39

During Four Years of College, Nolan MacGregor's Student Loans Are