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?

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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