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The image you uploaded provides a question about calculating the total cost of an unsubsidized loan using the "Simplified Daily Interest Formula."

### The formula used:
- **Daily interest** = $ \frac{{\text{{Principal balance}} \times \text{{Interest rate}}}}{365.25} $

### Step-by-step breakdown of the problem:

1. **Principal Balance** = \$60,000  
2. **Interest Rate** = 5.9% or 0.059 (as a decimal).

Using the daily interest formula:
\[
\text{{Daily Interest}} = \frac{{60,000 \times 0.059}}{365.25} \approx 9.69
\]
The daily interest is **\$9.69**.

### Monthly Interest Calculation:
In a 30-day month:
\[
\text{{Monthly Interest}} = 30 \times 9.69 = 290.70
\]

### Accrual Period:
- The formula for the accrual period (before regular payments begin) is:
\[
\text{{Accrual Period}} = 2 \times 12 + 6 = 30 \text{ months}.
\]

### Total Interest for Accrual Period:
\[
\text{{Total Interest}} = 30 \times 290.70 = 8,721
\]

Thus, the **total interest accrued** before regular payments begin is **\$8,721**.

Would you like further details or clarifications? 

Here are five follow-up questions to enhance your understanding:
1. What happens to the total interest if the interest rate increases?
2. How would the total cost change if the accrual period is reduced by 6 months?
3. How is the interest formula adjusted if the year has 366 days (leap year)?
4. How does the principal balance affect the daily interest calculation?
5. What is the impact of different loan payment frequencies (e.g., monthly vs. quarterly)?

### Tip:
When calculating interest, be mindful of the time period (days in the month/year) as it significantly impacts the accrued amount.

Find the total cost of the unsubsidized loan using the Simplified Daily Interest Formula.

Learn how to calculate the total cost of an unsubsidized loan using the Simplified Daily Interest Formula. This includes step-by-step guidance on finding daily and monthly interest based on principal balance, interest rate, and the accrual period. Ideal for Grades 10-12.

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