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Suppose that you have three student loans: $10,000 with an APR of 6.5% for 15 years, $15,000 with an APR of 7% for 20 years,
Suppose that you have three student loans: $10,000 with an APR of 6.5% for 15 years, $15,000 with an APR of 7% for 20 years, and $12,500 with an APR of 7.5% for 10 years.
A. calculate the monthly payment for each loan individually.
B. Calculate the total of your monthly payments during the life of all three loans (combined).
C. The bank offers to consolidate your three loans into a single loan with an APR of 6.5% and a loan term of 15 years. What will your monthly payments be in that case? What will your total monthly payments be over the 15 years? Discuss the pros and cons of accepting this loan consolidation.
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