1) A first year college student borrows money (a loan) to help pay for the tuition. The student can borrow $8,000 at an APR of 4% compounded monthly and will any payments until graduation is complete. However the interest will start to Accrve when the loan is taken out. not have to make A) Assuming graduation takes 4 years, what will the balance of the loan be when the student starts to pay monthly? Bal(n) = (Bal)(1+2)^ OWED= я 300 рек B) If the student only pays long will the student have to pay on (assume the loan will be paid when the balance reaches) DO $100. = (Bal) (1 + √₂2) ¹²+ - (Payment ) ( ( 1 + 1₂ ) ² = 1 7/12 how month, the loAN?
1) A first year college student borrows money (a loan) to help pay for the tuition. The student can borrow $8,000 at an APR of 4% compounded monthly and will any payments until graduation is complete. However the interest will start to Accrve when the loan is taken out. not have to make A) Assuming graduation takes 4 years, what will the balance of the loan be when the student starts to pay monthly? Bal(n) = (Bal)(1+2)^ OWED= я 300 рек B) If the student only pays long will the student have to pay on (assume the loan will be paid when the balance reaches) DO $100. = (Bal) (1 + √₂2) ¹²+ - (Payment ) ( ( 1 + 1₂ ) ² = 1 7/12 how month, the loAN?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:fi
CMP: Quiz 4.2.2
1) A first
year college student borrows money (a loan) to
help pay for the tuition. The student can borrow
$8,000 at an APR of 4% compounded monthly and will
not have to make any payments until graduation
is complete. However the interest will start to Accrve
When the loan is taken out.
NAME
A) Assuming graduation takes 4 years, what will the
balance of the loan be when the student starts
to pay monthly?
Bal(n) = (Bal) (1 + √2)^
$300 per
B) If the student only pays
how
the LOAN
will the student have to pay balance reaches,
long
(assume the loAN will be paid when the balance reaches)
$100.
12t
OWED = (Bal) (1 + √₂2) 1¹²+ - (Payment) ( ( 1 + ²/12) ¹2 =
1
)
7/12
month,
2
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