Question
In: Finance
You have an outstanding student loan with required payments of $ 500 per month for the...
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 %APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $ 250 a month in addition to your required monthly payments of $ 500 or $ 750 in total each month. How long will it take you to pay off the loan?
Note: Be careful not to round any intermediate steps less than six decimal places.)
The number of months to pay off the loan is
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jeff jeffy answered 2 months agoRelated Solutions
You have an outstanding student loan with required payments of $500 per month for the next...
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% APR.
You are considering making an extra payment of $200 today (that
is, you will pay an extra $200 that you are not required to
pay).
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?
What...
You have an outstanding student loan with required payments of $ 600 per month for the...
You have an outstanding student loan with required payments of $
600 per month for the next four years. The interest rate on the
loan is 8% APR (monthly). You are considering making an extra
payment of $150 today (that is, you will pay an extra $150 that
you are not required to pay). If you are required to continue to
make payments of $600 per month until the loan is paid off, what
is the amount of your final...
you have an outstanding student loan with required payments of $550 per month for the next...
you have an outstanding student loan with required payments
of
$550
per month for the next four years. The interest rate on the loan
is
10%
APR. 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).
a. If you are required to continue to make
payments of
$550
per month until the loan is paid? off, what is the amount of
your final? payment???...
1) Lilly agreed to repay a loan of $21,000 with payments of $500 per month. Using...
1) Lilly agreed to repay a loan of $21,000 with payments of $500
per month. Using an interest rate of j12=3.6%, calculate
the amount of principal repaid during the second year of the
loan.
2) Ace Industries borrowed $150,000 amortized over 10 years at a
rate of j12=4.8% with monthly payments (rounded up to
the next cent). Calculate their final payment.
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $329 per month,
starting next month for 28 more months. Your student loan is
requires that you pay $145 per month, starting next month for the
next 119 months.
A debt consolidation company gives you the following offer: It
will pay off the balances of
your two loans today and then charge you $487 per month for the
next 41...
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $325 per month,
starting next month for 26 more months. Your student loan is
requires that you pay $87 per month, starting next month for the
next 38 months.
A debt consolidation company gives you the following offer: It
will pay off the balances of
your two loans today and then charge you $501 per month for the
next 45...
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $413 per month,
starting next month for 28 more months. Your student loan is
requires that you pay $89 per month, starting next month for the
next 75 months. A debt consolidation company gives you the
following offer: It will pay off the balances of your two loans
today and then charge you $508 per month for the next 37...
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $313 per month,
starting next month for 35 more months. Your student loan is
requires that you pay $133 per month, starting next month for the
next 115 months.
A debt consolidation company gives you the following offer: It
will pay off the balances of
your two loans today and then charge you $451 per month for the
next 45...
Your car loan requires payments of $200 per month for the first year and payments of...
Your car loan requires payments of $200 per month for the first
year and payments of $400 per month during the second year. The
annual interest rate is 12 percent and payments begin now. What is
the present value of this two-year loan?
$6,347.83
$6,308.80
$6,246.34
$6,753.05
You have a loan outstanding. It requires making four annual payments of $8,000 each at the...
You have a loan outstanding. It requires making
four
annual payments of
$8,000
each at the end of the next
four
years. Your bank has offered to restructure the loan so that
instead of making the
four
payments as originally agreed, you will make only one final
payment in
four
years. If the interest rate on the loan is
9%,
what final payment will the bank require you to make so that it
is indifferent to the two forms of...
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