You have graduated from college but unfortunately have $37,000 in outstanding loans. The loans require payments of $3,450 per year, which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage). If the interest rate is 5 percent, how long will it take you to repay the debt? Use Appendix D to answer the question. Round your answer up to the next whole number. If the powers that be raise the rate to 7 percent, how many additional years will be required to retire the loans? Use Appendix D to answer the question. Round your answer up to the next whole number.
You have graduated from college but unfortunately have $37,000 in outstanding loans. The loans require payments of $3,450 per year, which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage). If the interest rate is 5 percent, how long will it take you to repay the debt? Use Appendix D to answer the question. Round your answer up to the next whole number. If the powers that be raise the rate to 7 percent, how many additional years will be required to retire the loans? Use Appendix D to answer the question. Round your answer up to the next whole number.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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You have graduated from college but unfortunately have $37,000 in outstanding loans. The loans require payments of $3,450 per year, which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage). If the interest rate is 5 percent, how long will it take you to repay the debt? Use Appendix D to answer the question. Round your answer up to the next whole number.
If the powers that be raise the rate to 7 percent, how many additional years will be required to retire the loans? Use Appendix D to answer the question. Round your answer up to the next whole number.
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