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. New Amount of Loan Original Rate Rate $24,000 12% 8% 7 Click the in
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. New Amount of Loan Original Rate Rate $24,000 12% 8% 7 Click the in
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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Use chart to find total savings
Transcribed Image Text:14. 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.
Original
New
Amount of
Loan
Rate
Rate
12%
$24,000
8%
7 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.)
7: Monthly Payment on a $1,000 loan
Number of Years for the Loan
20
Annual Interest Rate
4%
4
$22.58
10
$10.12
$6.06
5%
23.03
10.61
6.60
6%
23.49
11.10
7.16
8%
24.41
12.13
8.36
10%
25.36
13.22
9.65
12%
26.33
14.35
11.01
3
$29.53
29.97
30.42
31.34
32.27
33.21
30
$4.77
5.37
6.00
7.34
8.78
10.29
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