Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the new rate? Use the accompanying table of monthly payments on a $1,000 loan. Amount of Loan $22.000 Click the icon to view a table of monthly payments on a $1,000 loan. Original Rate 12% New Rate 4% The total savings in interest will be $ (Round to the nearest cent as needed.)
Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the new rate? Use the accompanying table of monthly payments on a $1,000 loan. Amount of Loan $22.000 Click the icon to view a table of monthly payments on a $1,000 loan. Original Rate 12% New Rate 4% The total savings in interest will be $ (Round to the nearest cent as needed.)
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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Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the new rate? Use the accompanying table of monthly payments on a $1,000
loan.
Amount of
Loan
$22.000
Original
Rate
12%
New
Rate
4%
Click the icon to view a table of monthly payments on a $1,000 loan.
The total savings in interest will be $
(Round to the nearest cent as needed.)
CELLS
Transcribed Image Text:gs in inte
earest c
Monthly Payment on a $1,000 loan
Annual Interest Rate
4%
5%
6%
8%
10%
12%
3
$29.53
29.97
30.42
31.34
32.27
33.21
Number of Years for the Loan
4
10
$22.58
$10.12
23.03
10.61
23.49
11.10
24.41
12.13
25.36
13.22
26.33
14.35
20
$6.06
6.60
7.16
8.36
9.65
11.01
30
$4.77
5.37
6.00
7.34
8.78
10.29
- X
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