You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate
Posted: Sun Apr 17, 2022 6:27 pm
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 9.75% 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).
b. What effective rate of return (expressed as an APR with
monthly compounding) have you earned on the $100?
$500 per month for the next four years. The interest rate on the
loan is 9.75% 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).
b. What effective rate of return (expressed as an APR with
monthly compounding) have you earned on the $100?