2. Marlie has to decide whether she can afford to make interest-only payments for the first 4.5 years or defer all payments for that period of time. If she decides to make no

payments during the 4.5 years, the interest will be capitalized at the end of that period.

Suppose Marlie decides to defer the payments.

a. What will be the new principal when she begins making loan payments?

$22,429.34