James is looking at attending SMU for a degree in Legal Studies. The tuition and room and board charges (plus books and other expenses) for one year will be $64,397.

James does not have this money. He needs a student loan. A Federal Direct Standard Loan has a repayment period of 10 years with an interest rate of 5%.

What will James' monthly payment be?

Over the life of the loan, how much more than the tuition and room and board charges will James have paid his lender?

Monthly payment = $268.32

Over the 10 years interest

= $32198.4

Step-by-step explanation:

According to the question

James will be paying his interest on a monthly basis.

So let's calculate how much the interest of a month it's going to be become with

P = 64397

R = 5

T = 1/12

I = (64397*5 * (1/12)) / 100

I = 321985 * (1/12) / 100

I = 26832.08333/100

I = 268.32

I = $268.32

So he will be paying$ 268.32 every month for 10 years

But in 10 years we have 10*12 = 120 months

So total interest = 120*268.32

= $32198.4