00:01
You're going to take out student loans while you're in college at a rate of 4 .75%.
00:05
So i'm going to go ahead and change that to 0 .0475.
00:09
So we want to figure out how much you're going to owe at the end of your senior year, including a three -month grace period.
00:15
So for the first year, 3 ,500 times 0 .0475, you're going to owe an interest of, i don't know where you got 665.
00:26
So you're going to owe interest of $3 ,500.
00:29
On $3 ,500, you'll owe interest of $16625.
00:34
I'm going to multiply the $3 ,500 by .0475.
00:38
We're only looking at for one year.
00:41
So that means that your new balance is going to be 366 .2.
00:51
Let me just, i'm losing numbers here.
00:54
3666 .6 .25.
00:57
Now, that's at the end of your freshman year.
00:59
The beginning of your sophomore year, you're going to add another 5 ,000 to that.
01:04
So that means we're going to earn pay interest on $5 ,000 plus the 366 .25, or 8666 .25.
01:16
So let's see what the interest is going to be there.
01:23
We're looking at interest that for that year would be $411 .65.
01:28
We're going to add that to the 866 .25.
01:32
So 8666 .25 plus the 411 .65.
01:37
And that's going to equal, so 9077 .9.
01:42
So we're going to continue that process.
01:44
Now for your junior year, you're going to borrow 6 ,000 more.
01:48
So we're going to have a balance of $15 ,077 .90 that you're going to pay interest on.
01:58
So we're going to multiply that by 0 .0475.
02:01
And we're going to get interest for that year to be 716 and 20 cents.
02:06
Add that to the $15 ,77 .90.
02:14
Your balance is now 15, 794 and 10 cents.
02:20
Now we go to your senior year.
02:22
Add another $8 ,000.
02:24
We're looking at $23 ,794 .10.
02:27
Then i'm going to multiply by the interest rate of 4 .75%...