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10 - Other of your assignments as financial planner is to design a new credit line for master program students. In general the master program
10 - Other of your assignments as financial planner is to design a new credit line for master program students. In general the master program lasts for two years at an average cost of 600/month, with students receiving the first 600 right at the moment their credit line is approved. They usually find a job and can start paying one month after they graduate. In this credit line, the loan is repaid in 36 equal monthly payments, and the bank expects to earn an effective rate of return of 10% aa. After doing some research you discovered that the rate of default is 8%. When there is default people never pay anything to the bank. Otherwise people pay timely everything they should. How much should be the fixed monthly payment after they graduate? a. 571.37 b. 520.25 C. 533.65 d. 561.18 e. none of the above 10 - Other of your assignments as financial planner is to design a new credit line for master program students. In general the master program lasts for two years at an average cost of 600/month, with students receiving the first 600 right at the moment their credit line is approved. They usually find a job and can start paying one month after they graduate. In this credit line, the loan is repaid in 36 equal monthly payments, and the bank expects to earn an effective rate of return of 10% aa. After doing some research you discovered that the rate of default is 8%. When there is default people never pay anything to the bank. Otherwise people pay timely everything they should. How much should be the fixed monthly payment after they graduate? a. 571.37 b. 520.25 C. 533.65 d. 561.18 e. none of the above
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