Part 1 You have an outstanding student loan with required payments of $500 per month for the next four years. The intere
Posted: Sun Apr 17, 2022 6:26 pm
Part 1 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 8.50% APR (compounded 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). (Note:
Be careful not to round any intermediate steps to fewer than six
decimal places.) a. 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? b. What effective rate of return
(expressed as an APR with monthly compounding) have you earned on
the $100?
payments of $500 per month for the next four years. The interest
rate on the loan is 8.50% APR (compounded 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). (Note:
Be careful not to round any intermediate steps to fewer than six
decimal places.) a. 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? b. What effective rate of return
(expressed as an APR with monthly compounding) have you earned on
the $100?