A student borrows $52,800 at 4.8% compounded monthly. Find the monthly payment and total interest paid over a 30 year payment plan. The payment size is $. (Round to the nearest cent.) The total interest paid over the 30 years is $ (Round to the nearest cent.)

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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### Loan Calculation Example

A student borrows $52,800 at an annual interest rate of 4.8%, compounded monthly. Determine the monthly payment and the total interest paid over a 30-year payment plan.

---

**Monthly Payment Calculation:**

The payment size is $ [input box].
*(Round to the nearest cent.)*

---

**Total Interest Calculation:**

The total interest paid over the 30 years is $ [input box].
*(Round to the nearest cent.)*

---

This example walks you through determining the monthly payment and total interest on a long-term loan by considering both the principal amount borrowed and the compounded interest rate.
Transcribed Image Text:### Loan Calculation Example A student borrows $52,800 at an annual interest rate of 4.8%, compounded monthly. Determine the monthly payment and the total interest paid over a 30-year payment plan. --- **Monthly Payment Calculation:** The payment size is $ [input box]. *(Round to the nearest cent.)* --- **Total Interest Calculation:** The total interest paid over the 30 years is $ [input box]. *(Round to the nearest cent.)* --- This example walks you through determining the monthly payment and total interest on a long-term loan by considering both the principal amount borrowed and the compounded interest rate.
Expert Solution
Step 1

We can use the below formula to calculate the monthly payment for the loan which compounded monthly. 

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