Liam just graduated from his state university with $$29,607$ in student loan debt. He is curious what his monthly payments will be if he repays over the standard $10$ years at $8$ percent. Liam also has an emergency fund that pays $3$ percent. Should he use some of that money to repay his student loans early? Why?

Note: Round intermediate computations to at least five $(5)$ decimal places.

Click on the table icon to view the Monthly Installment Loan P$$yment Factor $($MILPF$)$ table: $.$

Liam's monthly payment is $$.($Round to the nearest cent.$)$

Should Liam use some of the money in his emergency fund to repay the loan early? Why? $($Select the best answer below.$)$

A$.$ Liam can use some of the money in his emergency fund to repay his loan early because the $3\%$ is less than the interest on the loan, which is $8\%.$ He would give up less in interest earned by using some of the money than he would pay in interest if he repaid the loan early. If he does so$,$ he should funnel any reduced payments back into his emergency fund to rebuilt it$.$

B$.$ Liam should not use some of the money in his emergency fund to rep $y$ his loan early. Although the $3\%$ is less than the interest on the loan, which is $8\%,$ repaying his student loan is not an emergency.

C$.$ Liam should not use some of the money in his emergency fund to repay his loan early because the $3\%$ is less than the interest on the loan, which is $8\%.$ He would give up more in interest earned by using some of the money than he would pay in interest if he repaid the loan over the full $10$ years.

D$.$ Liam should use some of the money in his emergency fund to repay his loan early because the $8\%$ is less than the interest on the loan, which is $3\%.$ He would give up less in interest earned by using some of the money than he would pay in interest if he repaid the loan over the full $10$ years.