Question content area top Part 1 You have an outstanding student loan with required payments of $500 per month for the n
Posted: Sun Apr 17, 2022 7:04 pm
Question content area top 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?.
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?.