Suppose you have a student loan of ​$50,000 with an APR of 6​% for 30 years.   a. What are your required monthly​ payments? b. Suppose you would like to pay the loan off in 15 years instead of 30. What monthly payments will you need to​ make?   The monthly payment required to pay off the loan in 15 years instead of 30 is ​$ Compare the total amount​ you'll pay over the loan term if you pay the loan off in 15 years versus 30 years.   Total payments for the 30​-year loan=​$. Total payments for the 15​-year loan=​$

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
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Suppose you have a student loan of
​$50,000
with an APR of
6​%
for
30
years.
 
a. What are your required monthly​ payments?
b. Suppose you would like to pay the loan off in
15
years instead of
30.
What monthly payments will you need to​ make?
 
The monthly payment required to pay off the loan in
15
years instead of
30
is
​$
Compare the total amount​ you'll pay over the loan term if you pay the loan off in
15
years versus
30
years.
 
Total payments for the
30​-year
loan=​$.
Total payments for the
15​-year
loan=​$
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