Your cousin's student loan totaled $45,000 when he graduated. After making payments for the last 2.5 years (30 payments) in the amount of $595 per month, how much does your cousin still owe if the interest rate on student loans has been 6.29% per year?

Your cousin's student loan totaled $45,000 when he graduated. After making payments for the last 2.5 years (30 payments) in the amount of $595 per month, how much does your cousin still owe if the interest rate on student loans has been 6.29% per year?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 69P

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Your cousin's student loan totaled $45,000 when he graduated. After making
payments for the last 2.5 years (30 payments) in the amount of $595 per month, how
much does your cousin still owe if the interest rate on student loans has been 6.29%
per year?

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