Betty took out a subsidized student loan of $35,0

Question

Betty took out a subsidized student loan of $35,000 at a 4.8% APR, compounded monthly, to pay for her last four semesters of college. If she will begin paying off the loan in 21 months with monthly payments lasting for 20 years, what will be the amount of her monthly payment?

Arun · Accepted Answer

Dear student

Hi Chelsie

Her amount due = 35,000(1.004)^273
If her monthly payment is x
She'll pay = x(1.004)^240 + x(1.004)^239 + ....x(1.004)^1 + x
= x[(1.004)^241 - 1]/(1.004-1) =
Her payment = Amount due
so
x[(1.004)^241 - 1]/(1.004-1) = 35000(1.004)^273
404x = 35000(1.004)^273 = 104081
x = 104081/404 = $257.6

Monthly payment = $257.6

Regards

Arun (askIITians forum expert)

9 grade maths> Betty took out a subsidized student loan ...

Betty took out a subsidized student loan of $35,000 at a 4.8% APR, compounded monthly, to pay for her last four semesters of college. If she will begin paying off the loan in 21 months with monthly payments lasting for 20 years, what will be the amount of her monthly payment?

liam , 7 Years ago

Arun

Provide a better Answer & Earn Cool Goodies

LIVE ONLINE CLASSES

Ask a Doubt

In the figure (not to scale) AB = CD, angle DAP = angle DPA and A,B,C,D are concycli. If angle ADC = 80°, then find angle ACD.

9 grade maths

Solve : 2^(x+2)+2^(x-1)=9

9 grade maths

Volume of a Cylinder

9 grade maths

What length of tarpaulin 3m wide will be required to make conical tent of height 8m and base radius 6m ? Assume that the extra length of material that will be required for stitching and wastage in cutting is approximately 20cm ( Use pi= 3.14)

9 grade maths

Find the square of: 2a +b

9 grade maths

9 grade maths> Betty took out a subsidized student loan ...

Betty took out a subsidized student loan of $35,000 at a 4.8% APR, compounded monthly, to pay for her last four semesters of college. If she will begin paying off the loan in 21 months with monthly payments lasting for 20 years, what will be the amount of her monthly payment?

liam , 7 Years ago

Arun

Provide a better Answer & Earn Cool Goodies

LIVE ONLINE CLASSES

Ask a Doubt

Other Related Questions on 9 grade maths

In the figure (not to scale) AB = CD, angle DAP = angle DPA and A,B,C,D are concycli. If angle ADC = 80°, then find angle ACD.

9 grade maths

Solve : 2^(x+2)+2^(x-1)=9

9 grade maths

Volume of a Cylinder

9 grade maths

What length of tarpaulin 3m wide will be required to make conical tent of height 8m and base radius 6m ? Assume that the extra length of material that will be required for stitching and wastage in cutting is approximately 20cm ( Use pi= 3.14)

9 grade maths

Find the square of: 2a +b

9 grade maths