Question

Beth obtained a student loan of $80,000 to finish her last 2 years of medical school. She would make no payments until she finished, but the loan would accumulate interest at 3.3% compounded monthly. When she finished school, Beth was to begin monthly payments that would repay the loan in twelve years at 3.3% interest. (Round your final answers to two decimal places.) (a) Find the amount of the loan when Beth finished. (b) Find the monthly payments.

Answer 1

Beth during her Medical School, she did not pay away amount . Ir, After 2 years has principle amount should be accumulated Amount. Now, from The formula A P(1 + r )nt - Accurrelated ht Cases ist Amount Here, A=2 P 2$80,000 tz 2 n = 12 82 3.3 % P = principle vake rerate na number sim. t= time (years) 1 12x2 Therefore, A280000 (14 0.033) = 85,450.37158 ~ 85 45.40 2nd case Here, 285 450.40, A27 n = 12 (monthly) ta 12, r23.37 112x12 0.033 A285450.40 (it 12 2 126 899.13862 126899.14 - answer for (a) 881-24 and Her Monthly payment a T44 =18 Answer for (6)