Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $. (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 10 years instead of 20. What monthly payments will you need to make? The monthly payment required to pay off the loan in 10 years instead of 20 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) c. Compare the total amount you'll pay over the loan term if you pay the loan off in 10 years versus 20 years. Total payments for the 20-year loan = $.
Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $. (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 10 years instead of 20. What monthly payments will you need to make? The monthly payment required to pay off the loan in 10 years instead of 20 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) c. Compare the total amount you'll pay over the loan term if you pay the loan off in 10 years versus 20 years. Total payments for the 20-year loan = $.
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:Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a) through (c) below.
a. What are your required monthly payments?
The required monthly payment is $
(Do not round until the final answer. Then round to the nearest cent as needed.)
b. Suppose you would like to pay the loan off in 10 years instead of 20. What monthly payments will you need to make?
The monthly payment required to pay off the loan in 10 years instead of 20 is $
(Do round until the final answer. Then round to the nearest cent as needed.)
c. Compare the total amount you'll pay over the loan term if you pay the loan off in 10 years versus 20 years.
Total payments for the 20-year loan = $
Total payments for the 10-year loan = $
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