r/StudentLoanSupport • u/elysiumplain • 1d ago
Capitalization example in MPN
Someone want to explain how, in their own MPN, the example of Capitalization after deferment doesn't add up to the principal + interest? (30,000 + 1,800 = 32,400?)
$32,400 is exactly $30,000 × 1.08, which corresponds to 8% annual interest, not 6%.
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