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help asap You applied for the following student load to support your college study: Before graduation: - You will receive 57500/ per year from the
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You applied for the following student load to support your college study: Before graduation: - You will receive 57500/ per year from the beginning of each school year for 4 years; - You will graduate after 4 years; - Interest rate when you are at college will be 19 annually; After graduation: - You need to pay back all money with 60 month with constant payment amount every month: - First payment should be received at the end of first month after graduation: - Interest rate during this period will be 6% per yeur. Cakulate the monthly payment amount. Solution: Before Graduation: 1. The total amount of money received over 4 years is equivalent present worth of P=4 2. This is equivalent future worth upon graduation of F= ? After Graduation: 1. Effective interest rate per compounding period is i= % 2. For constant payment plan, monthly payment amount will be Step by Step Solution
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