Question
Asked Sep 18, 2019
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Consider a student loan of
​$15,000
at a fixed APR of
9​%
for
30
years.
 
a. Calculate the monthly payment.
b. Determine the total amount paid over the term of the loan.
c. Of the total amount​ paid, what percentage is paid toward the principal and what percentage is paid for interest.
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Expert Answer

Step 1

(a)

Calculate the monthly payment as follows.

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It is given that, the loan amount P = $15,000, APR 9% or 0.09 and Years 30 Known fact: number of months in a year n=12 For 30 years' n will be 360. APR P The formula for the monthly payment is PMT = APR 0.09 15000 12 PMT= -360 0.09 1-1 12 15000 (0.0075) -360 1-(10.0075 112.5 0.9321 $120.70 =

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Step 2

(b)

Find the total amount paid ove...

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The total amount paid over the term of the loan can be calculated as, 360x120.7$43,452|

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