Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

stuck on this question You have an outstanding student loan with required payments of $600 per month for the next four years. The interest rate

stuck on this question
image text in transcribed
You have an outstanding student loan with required payments of $600 per month for the next four years. The interest rate on the loan is 9% 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 $175 a month in addition to your required monthly payments of $600, or $775 in total each month. How long will it take you to pay off the loan? (Note: Be careful not to round any intermediate steps less than six decimal places.) The number of months to pay off the loan is (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Networking is a two-way street. Discuss this statement.

Answered: 1 week ago