Question
Should Sandra consolidate her debt? She has organized her current debt in the table below. Monthly Payment Number of Payments Remaining Remaining Balance Student Loan
Should Sandra consolidate her debt? She has organized her current debt in the table below.
| Monthly Payment | Number of Payments Remaining | Remaining Balance | |
| Student Loan | $302.89 | 40 | $10,956.21 |
| Mortgage | $1,503.81 | 235 | $207,612.80 |
She has an opportunity to consolidate her loans into one loan charging a lower rate. The term of the new loan would be 15 years with monthly payments of $1,804.19.
Option A: Keep the current loans.
Option B: Consolidate and have only the new loan.
2a. For which option (A or B) does Sandra pay less in total?
2b. Assuming she makes the choice you indicated above, exactly how much will she save compared to the other option?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
New Trends In Algebraic Geometry
Authors: K Hulek ,M Reid ,C Peters ,F Catanese
1st Edition
0521646596, 978-0521646598
