Rich is attending a four-year College as a freshman he was approved for a 10-year Federal unsubsidized student loan in the amount of 7900 at 4.29 per cent he knows he has the option of beginning repayment of the loan in 4.5 years he also know that during his non-payment time interest will accrue at 4.29 % .. If he decides to make no payments during the 4.5 years interest will be capitalized at the end of that period..

What will the new principal be when he begins making loan payments

how much interest will he pay over the life of the loan