A student loan of $25,000 has a 5% interest rate compounded daily. The following table includes repayment information for 5-, 10-, and 15-year plans. If monthly payments of $200 are made, how many years are needed to pay off the loan? I A Less than 5 years B) Between 10 and 15 years D More than 15 years Between 5 and 10 years Years Number of payments Monthly payment Total interest $471.78 $265.16 $197.70 5 10 15 60 120 180 $3,306.85 $6,819.65 $10,585.71
A student loan of $25,000 has a 5% interest rate compounded daily. The following table includes repayment information for 5-, 10-, and 15-year plans. If monthly payments of $200 are made, how many years are needed to pay off the loan? I A Less than 5 years B) Between 10 and 15 years D More than 15 years Between 5 and 10 years Years Number of payments Monthly payment Total interest $471.78 $265.16 $197.70 5 10 15 60 120 180 $3,306.85 $6,819.65 $10,585.71
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:A student loan of $25,000 has a 5% interest rate compounded daily. The following table includes repayment information for 5-, 10-,
and 15-year plans. If monthly payments of $200 are made, how many years are needed to pay off the loan?
I
A
B
(D
Less than 5 years
Between 10 and 15 years
More than 15 years
Between 5 and 10 years
Years Number of payments Monthly payment
5. 60
$471.78
10
120
$265.16
15
180
$197.70
Total interest
$3,306.85
$6,819.65
$10,585.71
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