Concept explainers
Pat receives a series of four annual federally subsidized student loans, each for $5,300 at 6.8%. To defray rising costs for her senior year, 3 years after acquiring the first loan she takes out a private student loan for $4,000 at 7.5% interest with a term of 10 years and capitalizes the interest for her last year of college She graduates 9 months after getting the private loan. Payments on all loans are deferred until 6 months after graduation. Find her monthly payment.

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