The Stafford plan now offers student loans at 4% annual interest. After two years the interest rate will increase to 6% per year. If you borrow $5,000 now and $5,000 each year thereafter for a total of four installments of $5,000 each, how much will you owe at the end of the fourth year? Interest is computed at the end of each year.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
The Stafford plan now offers student loans at 4% annual interest. After two years the interest rate will increase to 6% per year. If you borrow $5,000 now and $5,000 each year thereafter for a total of four installments of $5,000 each, how much will you owe at the end of the fourth year? Interest is computed at the end of each year.
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