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Ignore the first one. Just solve the second one You have an outstanding student loan with required payments of $500 per month for the next
Ignore the first one. Just solve the second one
You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate on the loan is 10% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $250 a month in addition to your required monthly payments of $500, or $750 in total each month. How long wil it take you to pay off the loan? (Note: Be careful not to round any intermediate stops less than six decimal places) The number of months to pay off the loan is (Round to two decimal places.) You are thinking about leasing a car. The purchase price of the car is $25,000. The residual value (the amount you could pay to keep the car at the end of the lease) is $15,000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 6.25% APR compounded monthly. What will be your lease payments for a 36 month lease? (Note: Be careful not to round any intermediate steps less than six decimal places) Your monthly lease payments will be $ (Round to the nearest cent)Step by Step Solution
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