Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Comp parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $ 192.57. (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 20 years instead of 40. What monthly payments will you need to make? The monthly payment required to pay off the loan in 20 years instead of 40 is $ (Do not round until the final answer. Then round to the nearest cent as needed.)

Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Comp parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $ 192.57. (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 20 years instead of 40. What monthly payments will you need to make? The monthly payment required to pay off the loan in 20 years instead of 40 is $ (Do not round until the final answer. Then round to the nearest cent as needed.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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