The problem involves calculating the amount of interest due 4 months after a student begins payments on a loan of $59,000 at an annual interest rate of 6.5%. Here's how we can solve this:

Formula for Simple Interest:

$I = P \times r \times t$ Where:

• $I$ is the interest due.
• $P$ is the principal amount (loan amount), which is $59,000.
• $r$ is the annual interest rate as a decimal, so 6.5% = 0.065.
• $t$ is the time in years. Since we are given 4 months, convert that into years: $\frac{4}{12} = \frac{1}{3}$ years.

Plugging in the values:

$I = 59,000 \times 0.065 \times \frac{1}{3}$

I'll now calculate the interest.The amount of interest due after 4 months is approximately $1,278.33.

Do you want more details or have any questions about this calculation?

Here are some related questions for further exploration:

1. How would the interest change if the loan period was 6 months instead of 4?
2. What would happen if the interest rate increased to 7%?
3. How much interest would accumulate over a full year?
4. What is the total loan amount including interest if the loan were repaid after 4 months?
5. How does compound interest compare to simple interest for this loan?

Tip: Always convert the time period into years when dealing with annual interest rates in simple interest calculations.