Suppose that you graduate with $50,000 in student loans. Your loans amortize over 10 years period. Payments are due monthly, and the interest rate is 6% per year. 1) How much interest will you pay if you only make the minimum payments each month? Suppose that you spend $6 at Starbucks each day. You know making coffee at home costs you $1 per day, and that you can save $152 per month by not drinking Starbucks.

2) How much interest will you save over the life of your loan if you apply an extra $152 to each of your monthly payments? 3) How many monthly payments will you have to make if you apply an extra $152 to each of your payments?