Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . Assume you borrow 1 0 , 0 0 0 . 0 0 per year for four years of college. If the interest is

1. Assume you borrow 10,000.00 per year for four years of college. If the interest is deferred and compounded annually at 7 percent, how much will you owe at the end of 4 years when you graduate?
2. Using the information form above, if the loans continue to charge 7% compounded annually and you make 3,600.00 annual payments (300.00 a month) how long will it take to pay off your student loans?
3. Housing prices vary a great deal if you save 2,000.00 a year by renting a cheaper place and borrowed 8,000.00 per year for four years with deferred interest at 7% compounded annually, how much will you owe at the end of four years?
4. How long will it take to pay off this loan at 3,600.00 if the interest rate continues to be 7% compounded annually?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Master The Art Of House Flipping

Authors: Livia V. Velez

1st Edition

979-8865806561

More Books

Students also viewed these Finance questions