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 10% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $175 a month in addition to your required monthly payments of $500, or $675 in total each month. How long will it take you to pay off the loan? (Note: Be careful not to round any intermediate steps less than six decimal places.) The number of months to pay off the loan is ... (Round to two decimal places.)

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 10% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $175 a month in addition to your required monthly payments of $500, or $675 in total each month. How long will it take you to pay off the loan? (Note: Be careful not to round any intermediate steps less than six decimal places.) The number of months to pay off the loan is ... (Round to two decimal places.)

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

See similar textbooks

Similar questions

You want to buy a car without going into debt. You are budgeting $58,796 for the purchase price and you want to make the purchase in 5 years. You think you can earn 9.79% per year on any savings you generate between now and the car purchase. How much will you have to deposit at the end of each month in order for you to be able to pay cash for that car in 5 years?
Stafford loans are the most popular form of student loan in the United States. The current interest rate on a Stafford loan is 4.34% per year. If you borrow $29,000 to help pay for your college education at the beginning of your freshman year, how much will you have to pay at the end of your freshman, sophomore, junior, and senior years for this loan? This is a total of four years over which the original loan will be repaid. The annual loan payment will be ______
You want to save 10,000 for a down payment on a home by making regular monthly deposits over 4 years. Take the APR to be 7.5%. How much do you need to deposit each month?
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 9.0% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $200 a month in addition to your required monthly payments of $500, or $700 in total each month. How long will it take you to pay off the loan? (Note: Be careful not to round any intermediate steps less than six decimal places.) You can pay off the loan in months. (Round to two decimal places.) ←
Obuor a level 100 student at the university plans to take $5000 for each academic year and this amount will attract an interest of 15% annually compounded quarterly . How much will he owe the loan company after his four year study if he plans to take the loan at the start of each academic year ?
You have decided to buy a car this year at a price of $18,000. You're planning to take out a loan for the full price of the vehicle at an interest rate of .5% per month. For the first two years (24 months), you decide to repay $600 per month. How much will you have to pay each month for the remainder of the three-year loan (12 months remain) to exactly pay off the car in full at the end of the three-year term? Hint: Consider the monthly interest rate, the number of periods in months, and the monthly cash flows. $433 $500 $443 $600 O $419
Draw the cash flow diagram for each problem and use interest rate with five decimal places. A person needs $20,000 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 10 years. The annual interest rate being charged is 10% compounded bimonthly. What is the amount of each payment?
Total expenses for a year at college will be $9,000. You plan to pay $2,600 from your savings and finance the rest at a 5% simple interest. If you make 12 equal payments in one year, how much is each?
You expect that you will need to replace your furnace in 4 years at a cost of $16,716. How much must you save, each month for 30 months, starting next month (the same amount each month) if your savings account pays 2.91% APR (compounded monthly)?
Need asap...
Solve the problems below. Be sure to show your work. If you use the formula, be sure to write it out a long with each step. You have reviewed your budget and determine that the most you can afford on a car loan is $455 per month. What is the most you can borrow if interest rates are 7% and you can pay the loan over 4 years?
You have decided to start saving for retirement. Your bank is willing to set you up with an IRA with a 9.2% APR. You need to have $925, 000 in the account in 45 years to be able to retire. 2a. How much of your remaining monthly budget do you want to put into the account each month? 2b. Why did you decide on this number? Support your answer with at least 3 sentences.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS