Consider Alex Chong, a new freshman who has just received a study loan and started college. He plans to obtain the maximum loan at the beginning of each year. Although Alex Chong does not have to make any payments while he is still in school, the 6.5 percent interest per year compounded monthly owed accrued and is added to the balance of the loan.

Study Loan Limits

Year 1

RM26,250

Year 2

RM35,000

Year 3

RM55,000

Year 4

RM55,000

After graduation, Alex Chong gets a six-month grace period. This means that monthly payments are still not required, but interest is still accruing. After the grace period, the standard repayment plan is to amortize the debt using monthly payments for 10 years.

Required:

Using the standard repayment plan and a 6.8 percent APR interest rate, compute the monthly payments Alex Chong owes after the grace period.