Starting on July 1, 2000, Peter borrows $8,600.00 each year for 4 years from his dear Aunt May to pa

Starting on July 1, 2000, Peter borrows $8,600.00 each year for 4 years from his dear Aunt May to pay for college. (Note: the last date that he borrows money is July1, 2003.) From the beginning, Aunt May agreed to defer all interest on the loans until Peter finds a job; i.e. Peter's loans will not accumulate any interest until thefirst day he starts working. After that, Peter will be charged 8.8 percent compounded semiannually, and he will pay Aunt May back with 20 equal semiannual payments,the first coming 6 months after he starts his job. Peter finds a job as a photographer for a local newspaper, and his first day of work is July 1, 2004. For taxreasons, Peter needs to know the following: What is the total amount of interest that Peter will pay to Aunt May in the year 2007? (i.e. add up the interest from thetwo payments that he'll pay that year)
Hint: The easiest way to do this problem is to set up an amortization schedule for the loan.