Question 7 Part E: You will be in graduate school for the next two years. You borrowed some money from the bank for your graduate education, which the bank has accepted to be paid after you graduate from school in three years. The bank has accepted to the following payment plan: from the beginning of Year 3 (25th month) to end of year 5 (60th month), pay $950 per month 25 and increase payment by 2% every month thereafter. How much money should you put aside each month (equal amount) for the first 24 months (during graduate school) such that you can pay the loan back after graduation? Use an APR of 12%, compounded monthly. Question 7 Part E: Provide a statement to your answers to Parts C and D. The total value of the repayment plan is $_PartC_ and I will need to set aside $_PartD_ per month to pay this amount off. I will need to set aside $_PartD_ per month at 12% compounded monthly to pay this amount off. The total value of the repayment plan is $_PartC_ and I will need to set aside $_PartD_ per month at 12% compounded monthly to pay this amount off. The total value of the repayment plan is $_PartC_ at 12% compounded monthly.
Question 7 Part E: You will be in graduate school for the next two years. You borrowed some money from the bank for your graduate education, which the bank has accepted to be paid after you graduate from school in three years. The bank has accepted to the following payment plan: from the beginning of Year 3 (25th month) to end of year 5 (60th month), pay $950 per month 25 and increase payment by 2% every month thereafter. How much money should you put aside each month (equal amount) for the first 24 months (during graduate school) such that you can pay the loan back after graduation? Use an APR of 12%, compounded monthly. Question 7 Part E: Provide a statement to your answers to Parts C and D. The total value of the repayment plan is $_PartC_ and I will need to set aside $_PartD_ per month to pay this amount off. I will need to set aside $_PartD_ per month at 12% compounded monthly to pay this amount off. The total value of the repayment plan is $_PartC_ and I will need to set aside $_PartD_ per month at 12% compounded monthly to pay this amount off. The total value of the repayment plan is $_PartC_ at 12% compounded monthly.
Chapter4: Time Value Of Money
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Transcribed Image Text:Question 7 Part E:
You will be in graduate school for the next two years. You borrowed some money from the
bank for your graduate education, which the bank has accepted to be paid after you
graduate from school in three years.
The bank has accepted to the following payment plan: from the beginning of Year 3 (25th
month) to end of year 5 (60th month), pay $950 per month 25 and increase payment by 2%
every month thereafter.
How much money should you put aside each month (equal amount) for the first 24 months
(during graduate school) such that you can pay the loan back after graduation? Use an APR
of 12%, compounded monthly.
Question 7 Part E: Provide a statement to your answers to Parts C and D.
The total value of the repayment plan is $_PartC_ and I will need to set aside $_PartD_ per month to
pay this amount off.
I will need to set aside $_PartD_ per month at 12% compounded monthly to pay this amount off.
The total value of the repayment plan is $_PartC_ and I will need to set aside $_PartD_ per month at
12% compounded monthly to pay this amount off.
The total value of the repayment plan is $_PartC_ at 12% compounded monthly.
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