The Effects of Debt on Your Financial Plan Suppose you’re currently saving \($300\) per month, in an account earning 5 percent interest, so that you can attend graduate school six years from now. You decide to buy an automobile and take out a six-year loan with payments of \($150\) per month. This decision means that you will have to reduce your monthly graduate school savings contributions by \($150\) per month. At the end of the six years, how much money would you have been able to save (not counting the interest you would have made on the money, had you deposited it in the account)?

157