Rich Is attending a 4-year college. As a freshman, he was approved for a 10-year, federal unsubsidized student loan in the amount of $7,900 at 4.29%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that during this non-payment time, interest will accrue at 4.29%.
Rich made his last monthly interest-only payment on November 1. His next payment Is due on December 1. What will be the amount of that Interest-only payment?
