The payments described below are compounded monthly.

Suppose you borrow $$25,000$ on Sept $1,25006,$ and another $$25,000$ on Sept $1,$

$2007$ to finace the portion of tuition and living expenses for graduate school

for which your savings are insufficient. Repayment on each of these loans ids

deferred until graduation. However, interest of $6\mathrm{.}5\%($quoted APR$)$ begins

accuring immediately $($compounded monthly$).$ The fist payment is due Spet $1,$

The loan agreement specifies that they loan be repaid in $120$ equal

monthly installments.

A$.$ What will be the total value of your indebtedness on August $31,2008$

$($Assume interest for the last month has accrued but no payments have yet

been made$)$ will be

B$.$ The monthly payment will be

Write your answers in numerals without a $ sign. Use $2$ decimal points $($cents$)$

if appropriate. Use commas if appropriate.

Answer $1$:

$55135\mathrm{.}02$

Answer $2$:

$622\mathrm{.}67$