OM If you started today and borrowed $5,000 every 6 MONTH until the end of 4YEARS (8 borrow periods in total) in a student loan which carrys a nominalannual 6% interest rate compounded MONTHLY. After 4 years, you start topay back monthly over 10 year period. How much is your month payment?(period 0 = $5,000, period 2 = $5,000,...., period 7 = $5,000)O 612.97O 496.11O 570.53O 548.26O 509.29

Loan Payments: These are periodic payments made to the lender by the borrower for amortizing the…

Answered: 10 year period. How much is your month…

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10 year period. How much is your month payment?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

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Question

If you started today and borrowed $5,000 every 6 MONTH until the end of 4
YEARS (8 borrow periods in total) in a student loan which carrys a nominal
annual 6% interest rate compounded MONTHLY. After 4 years, you start to
pay back monthly over 10 year period. How much is your month payment?
(period 0 = $5,000, period 2 = $5,000,...., period 7 = $5,000)
O 612.97
O 496.11
O 570.53
O 548.26
O 509.29

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