Use chart to find total savings 14. Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at thenew rate? Use the accompanying table of monthly payments on a $1,000 loan.OriginalNewAmount ofLoanRateRate12%$24,0008%7 Click the icon to view a table of monthly payments on a $1,000 loan.The total savings in interest will be $(Round to the nearest cent as needed.)7: Monthly Payment on a $1,000 loanNumber of Years for the Loan20Annual Interest Rate4%4$22.5810$10.12$6.065%23.0310.616.606%23.4911.107.168%24.4112.138.3610%25.3613.229.6512%26.3314.3511.013$29.5329.9730.4231.3432.2733.2130$4.775.376.007.348.7810.29

Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the new rate? Use the accompanying table of monthly payments on a $1,000 loan. New Amount of Loan Original Rate Rate $24,000 12% 8% 7 Click the in

Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the new rate? Use the accompanying table of monthly payments on a $1,000 loan. New Amount of Loan Original Rate Rate $24,000 12% 8% 7 Click the in

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Question

Use chart to find total savings

14. Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the
new rate? Use the accompanying table of monthly payments on a $1,000 loan.
Original
New
Amount of
Loan
Rate
Rate
12%
$24,000
8%
7 Click the icon to view a table of monthly payments on a $1,000 loan.
The total savings in interest will be $
(Round to the nearest cent as needed.)
7: Monthly Payment on a $1,000 loan
Number of Years for the Loan
20
Annual Interest Rate
4%
4
$22.58
10
$10.12
$6.06
5%
23.03
10.61
6.60
6%
23.49
11.10
7.16
8%
24.41
12.13
8.36
10%
25.36
13.22
9.65
12%
26.33
14.35
11.01
3
$29.53
29.97
30.42
31.34
32.27
33.21
30
$4.77
5.37
6.00
7.34
8.78
10.29

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