Kendrick took out a total of $10,000 in unsubsidized Stafford loans for his four-year college education. How much interest that accrued during his four years of college will he have to repay assuming a market rate of 5 percent?

A bit of further explanation:

The parent function is y = 1/x which is a hyperbola that has a vertical asymptote overlapping the y axis perfectly. Its vertical asymptote is x = 0 as we cannot divide by zero. If x = 0 then 1/0 is undefined.

Shifting the function h units to the right (h is some positive number), then we end up with 1/(x-h) and we see that x = h leads to the denominator being zero. So the vertical asymptote is x = h

For example, if we shifted the parent function 2 units to the right then we have 1/x turn into 1/(x-2). The vertical asymptote goes from x = 0 to x = 2. This shows how the vertical asymptote is very closely related to the horizontal shifting.