Question
Question 10 You expect to graduate with $50,706 in student loans. The interest rate on your loan is 7.2 percent compounded monthly and the loan
Question 10
You expect to graduate with $50,706 in student loans. The interest rate on your loan is 7.2 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 19 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first).
Question 11
You are excited to buy your first house. Based on your credit history, the bank is willing to lend you money at 5 percent interest compounded monthly. You can afford monthly payments of $870. How much can you afford to borrow? Assume the mortgage is for 29 years.
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
