Question
A student loan paid faithfully for 23 years had the following statistics: Borrowed: $26,400 Paid back to date: $32,700 Still Owes: $45,276.63 Monthly Payment :
A student loan paid faithfully for 23 years had the following statistics: Borrowed: $26,400 Paid back to date: $32,700 Still Owes: $45,276.63
Monthly Payment : 282.524
Annual Rate of Interest : 12%
Given her monthly payment, how long will it take for the student to pay their loan back?
What amount of monthly payment would have allowed the student to pay their loan back in 23 years? (Hint: You can either use Excels PMT function to answer this or guess and check. For the guess and check approach, pick a constant monthly payment for 276 months, compute the present value of each payment using the monthly interest rate, and ensure that the sum of these 276 present values exactly equals the amount of the loan.)
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
