Question
You have an outstanding student loan with required payments of $ 600 per month for the next four years. The interest rate on the loan
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
10 %
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
$ 250
a month in addition to your required monthly payments of
$ 600 ,
or
$ 850
in total each month. How long will it take you to pay off the loan?
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
