Ashea Smith is a 22-year-old senior who used the Stafford loan program to borrow $4,000 four years ago when the interest rate was 4.06% per year. $5,000 was borrowed three years ago at 3.42%. Two years ago she borrowed $6,000 at 5.23%, and last year $7,000 was borrowed at 6.03% per year. Now she would like to consolidate her debt into a single 20-year loan with a 5% fixed annual interest rate. If Ashea makes annual payments (starting in one year) to repay her total debt, what is the amount of each payment?
Ashea Smith is a 22-year-old senior who used the Stafford loan program to borrow $4,000 four years ago when the interest rate was 4.06% per year. $5,000 was borrowed three years ago at 3.42%. Two years ago she borrowed $6,000 at 5.23%, and last year $7,000 was borrowed at 6.03% per year. Now she would like to consolidate her debt into a single 20-year loan with a 5% fixed annual interest rate. If Ashea makes annual payments (starting in one year) to repay her total debt, what is the amount of each payment?
Chapter6: Business Expenses
Section: Chapter Questions
Problem 68P
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Ashea Smith is a 22-year-old senior who used the Stafford loan program to borrow $4,000 four years ago when the interest rate was 4.06% per year. $5,000 was borrowed three years ago at 3.42%. Two years ago she borrowed $6,000 at 5.23%, and last year $7,000 was borrowed at 6.03% per year. Now she would like to consolidate her debt into a single 20-year loan with a 5% fixed annual interest rate. If Ashea makes annual payments (starting in one year) to repay her total debt, what is the amount of each payment?
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