A. college loan. To help with the cost of tuition, room , and board, you take ou

Question

A. college loan. To help with the cost of tuition, room , and board, you take out a loan of $20,000 for college. You do not have to make any payments on the loan until you leave school. However, the loan amount accumulates interest at the rate of 12% annually. To determine how much you will owe after x years of school, complete the table and graph.

years in school         money owed                              
0                             20,00

1

2

3

4

5

6

*Suppose after graduating college, you enter law school. How much would be owed after a total of 8 yrs in school?


* Suppose, after graduation, you decide on medical school. how much would be owed after a total of 12 years in school?

* What is the domain and range of the problem situation?

What function rule can be used to find the amount you will owe in student loans after staying in school for x years?  M(x) =

Explanation / Answer

you will have to do the graph yourself from the results but the equation is FV=PV(1+i)^n where FV is the future value, PV is the present value, i is the interest and n is the number of years. so below is the chart year 0 owe 20000 year 1 owe 22400 year 2 owe 25088 year 3 owe 28098.6 year 4 owe 31470.4 year 5 owe 35246.8 year 6 owe 39476.5 year 8 owe 49159.3 year 12 owe 77919.5 domain is the number of years in school and range is the future value of the loan.

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