Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have an outstanding student loan with required payments of $550 per month for the next four years. The interest rate on the loan is

image text in transcribed
You have an outstanding student loan with required payments of $550 per month for the next four years. The interest rate on the loan is 8% 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 $200 a month in addition to your required monthly payments of $550, or $750 in taleach month. How long wil it take you to pay of the loan? (Note: Be careful not to round any intermediate sepsless than six decimal places) The number of months to pay of the loan is (Round to two decimal places) Enter your answer in the answer box

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_2

Step: 3

blur-text-image_3

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

Mergers Acquisitions And Other Restructuring Activities

Authors: Donald DePamphilis

10th Edition

0128150750, 978-0128150757

More Books

Students also viewed these Finance questions