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
To find Cameron's student loan balance at the end of 2 years, we first need to find out how much the loan balance will be reduced by, and then subtract that amount from the initial balance of $60,000.
Each year that Cameron works in a designated high-need area, his loan balance will be reduced by 12%. After 2 years, the loan balance will be reduced by (1 - 0.12) * (1 - 0.12) = 0.88 * 0.88 = 0.7744, or 77.44% of the initial balance.
Therefore, Cameron's student loan balance at the end of 2 years will be $60,000 * 0.7744 = $46,464.
Therefore, the correct answer is D) $46,464.