Ursula took out an unsubsidized stafford loan to pay for her first of her four years at college. the loan had a principal of $6,400, an interest rate of 6.9% compounded monthly. after college, ursula started making monthly payments over a 10 year period on her loan. what percentage of the total cost of the loan is the finance charge?

49.82%

Step-by-step explanation:

The expression used in determining the compound interest is as follows:

where;

A = amount = ???

P = Principal = 6400

r = interest rate = 6.9% = 0.069

n = number of times the interest is compounded = 12

t = time = 10

A = $12,734.59

This typically implies that the total amount required by Ursula to be paid = $12,734.59.

The finance charge = $12,734.59 - $6400

= $6344.59

To determine the percentage of the finance cost; we have the following:

$12,734.59 = 100%

$6344.59  = x %

x =

x = 49.82%

go and ask your mom to you