A physician assistant's student loan balance will be reduced by 12% and payments will be postponed each year that the physician assistant works in a designated high-need area.
Cameron is a physician assistant.
Cameron has a $60,000 student loan balance when he graduates.
Cameron works in a designated high-need area for 2 years and makes no loan payments.
What is Cameron's student loan balance at the end of the 2 years?
Responses
A $52,800$52,800
B $13,536$13,536
C $45,600$45,600
D $46,464
B $13,536
Calculation:
Original loan balance = $60,000
Reduction each year = 12% of $60,000 = $7,200
Reduction over 2 years = $7,200 x 2 = $14,400
Loan balance at the end of 2 years = $60,000 - $14,400 = $45,600
Since Cameron did not make any payments, his loan balance is reduced by $14,400, leaving him with a balance of $60,000 - $14,400 = $45,600 at the end of the 2 years.