None You have an outstanding student loan with required payments of $500 per month for the next 4 years. The interest rate on the loan is 11% APR (monthly). You areconsidering making an extra payment of $100 today (that is, you will pay an extra $100 that you are not required to pay). If you are required to continue to makepayments of $500 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR withmonthly compounding) have you earned on the $100?

To solve this problem, we will approach it in two parts:Find the amount of the final payment after…

Answered: You have an outstanding student loan…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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Similar questions

You have an outstanding student loan with required payments of $600 per month for the next 4 years. The interest rate on the loan is 9.50% APR (monthly). You are considering making an extra payment of $100 today (i.e., you will pay an extra $100 that you are not required to pay). If you are required to continue to make payments of $600 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $100? (Note: Be careful not to round any intermediate steps less than six decimal places.) If you are required to continue to make payments of $600 per month until the loan is paid off, what is the amount of your final payment? The final payment is $ (Round to the nearest cent.)
You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate on the loan is 8% APR (monthly). You are considering making an extra payment of $150 today (that is, you will pay an extra $150 that you are not required to pay). If you are required to continue to make payments of $500 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $150?
You have an outstanding student loan with required payments of $600 per month for the next four years. The interest rate on the loan is 8% APR (monthly). You are considering making an extra payment of $200 today (that is, you will pay an extra $200 that you are not required to pay). If you are required to continue to make payments of $600 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $200? If you are required to continue to make payments of $600 per month until the loan is paid off, what is the amount of your final payment? The amount of your final payment is $ (Round to the nearest cent.)
You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate on the loan is 9% APR (monthly). You are considering making an extra payment of $100 today (that is, you will pay an extra $100 that you are not required to pay). If you are required to continue to make payments of $500 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $100? If you are required to continue to make payments of $500 per month until the loan is paid off, what is the amount of your final payment? The amount of your final payment is $ 356.86. (Round to the nearest cent.) What rate of return (expressed as an APR with monthly compounding) have you earned on the $100? Effective rate is%. (Round to the nearest integer.)
You have an outstanding student loan with required payments of 550 per month for the next four years. The interest rate on the loan is 10% APR (monthly). You are considering making an extra payment of $150 today (that is, you will pay an extra $150 that you are not required to pay). If you are required to continue to make payments of $550 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding have you earned on the $150?
After graduation, you decide that you can pay $203.24 per month extra on your student loan ( standard monthly payment is 302.99), which has a balance of $50,000 and 20 years of monthly payments remaining. The annual interest rate on the loan is 4% How many years early will you be able to pay off the loan? Please answer in excel.
You borrow $8000 to help pay your college expenses. You agree to repay the loan at the end of 6 years at 9% interest compounded quarterly. What is the maturity value of the loan? How much interest are you paying on the loan?
You finance your college education with a student loan. Every month, you borrow $1,000 to pay for living expenses. While in college, you do not have to pay interest on the loan, nor do you need to pay back any loan principal. However, the interest accrues to your loan balance. Assume an annual interest rate of 6% on your student loan, what will be your loan balance when you graduate in four years (round your answer to the nearest dollar)? $52,495 None of these are correct $48,000 $54,098 50,880
You have just graduated and it is time to repay your student loans. Payments will be made monthly for 10 years at an annual interest rate of 5%. If your outstanding student loan balance is $20,000 what will be your monthly payment?
You receive a 10-year subsidized student loan of $18,000 at an annual interest rate of 5%. What are your monthly loan payments for this loan when you graduate? (Round your answer to the nearest cent.)
You borrow $5000 to help pay your college expenses. You agree to repay the loan at the end of 9 years at 12% interest, compounded quarterly. How much interest are you paying on the loan?
You expect to graduate with $30,847 in student loans. The interest rate on your loan is 6.4 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 21 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first).

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