The picture above is the solution someone did, but I'm confused on how the total principal in 5 years is $40,000.00. I'm also, confused on how the person got 102.66 months or 8.5 years for the answer for the 2nd part of the question. I've also, provided the original questions and please show ALL work, thank you.
5) 4pt. Student loan debt A student borrows $2.000 per quarter at 5%APR interest compounded monthly (.05/12 per month) to help cover tuition and living expenses. The payments are deferred (meaning interest accrues but does not need to be repaid till the student graduates). The student borrows that same amount all 5 years it took to get through engineering school, they take out a new loan every quarter, but they do not attend summer school and do not start repayment till graduation. They take out loans every September 1", January 1 and April 1. Upon graduation the student lands a job and starts repaying the loans. Immediately after graduation July 1 the student pays $500 a month separated evenly toward each the loans (exception the last payment). When it is all over how much do the loans cost (total-loan+intrest)? How long after graduation till the loan is paid off (balance-0)? Note interest is accrued every month for the remainder of the balance
