The rate of interest on Federal government debt borrowed in 2020is 2.75%. If you borrow...

The rate of interest on Federal government debt borrowed in 2020 is 2.75%. If you borrow $13,001 by the time you graduate and rates stay the same, what will be your monthly payment if you want to pay it off in 14 years?

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Expert Solution

Number of months = 14 * 12 = 168

n = 168

Monthly interest rate, r = 2.75%/12 = 0.002291666667

PV = 13,001

Monthly payment = $93.3249733713

jeff jeffy answered 2 years ago

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