Gertrude takes out a $5,500 subsidized stafford loan, which must be paid back in ten years. gertrude will graduate four years after taking out the loan. if the loan has an interest rate of 6.8%, compounded monthly, and gertrude makes monthly payments, how much interest will she pay by the time the loan is repaid? round all dollar values to the nearest cent.
a.
$4,462.40
b.
$1,213.28
c.
$1,713.69
d.
$2,094.80
i did the math and got a. just want confirmation

Amount of loan taken by Gertrude =$ 5,500

Rate of Interest of Loan= 6.8% compounded monthly

Time =10 years= 120 months

Formula for Compound interest

If Gertrude pay the loan in four years

I have rounded the value of to 3 places that's why the value is coming out to be 2117.5 , otherwise it will be near around to 2100.

So, option D: $2094.80 is most appropriate choice if loan is repaid in four years.

Now, if Gertrude will repay the loan in 10 years.

N=12 ×10=120 months

If loan is repaid in ,10 years, total value of loan=$ 6903.60

Then none of the option is true.