Carlos took seven years to pay off his loan by making identical quarterly payments. The loan had a principal of $22,375 and 5.49% interest, compounded quarterly. Carlos paid a total of $28,821.67. How much did Carlos pay in service charges

$1,721.274

Explanation:

The amount paid as service charge is the difference between the total amount paid by Carlos on the loan and the total installment due.

Service charge = Amount paid -  Total installment payment

The quarterly installment payment from the loan can be determined as follows:

Quarterly equal installment = Loan amount/Annuity factor

Quarterly interest rate = 5.49%/4 =1.3725%

Annuity factor = 1- (1+r)^(-n)/r

r =1.3725%,

n = 4×7   there are four quarters in a year

Annuity factor = (1- (1.013725)^(-4×7) )/0.01327)

                     = 23.1177

Quarterly installment payment interest

                              = 22,375/23.1177

                            = 967.87

Total amount paid in installment

                             = 967.871× 7 × 4

                               = 27,100.39518

Service charge = Amount paid -  Total installment payment

                         $28,821.67 - 27,100.395

                       =$1721.274

answer(b) equal; set period;

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

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anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

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