Question

You took out some student loans in college and now owe $12,000. You consolidated the loans into one amortizing loan, which has an annual interest rate of 6% (APR).

Attempt 1/5 for 10 pts.

Part 1

If you make monthly payments of $200, how many months will it take to pay off the loan? Fractional values are acceptable.

Answer 1

Statement showing repayment schedule

			Towards
Months	Opening balance	Installment	Int @ 6/12 = 0.5%	Principal	Closing balance
1	12000	200	60	140	11860
2	11860	200	59.3	140.7	11719.3
3	11719	200	59	141	11578
4	11578	200	58	142	11436
5	11436	200	57	143	11293
6	11293	200	56	144	11149
7	11149	200	56	144	11005
8	11005	200	55	145	10860
9	10860	200	54	146	10715
10	10715	200	54	146	10568
11	10568	200	53	147	10421
12	10421	200	52	148	10273
13	10273	200	51	149	10124
14	10124	200	51	149	9975
15	9975	200	50	150	9825
16	9825	200	49	151	9674
17	9674	200	48	152	9522
18	9522	200	48	152	9370
19	9370	200	47	153	9217
20	9217	200	46	154	9063
21	9063	200	45	155	8908
22	8908	200	45	155	8753
23	8753	200	44	156	8597
24	8597	200	43	157	8440
25	8440	200	42	158	8282
26	8282	200	41	159	8123
27	8123	200	41	159	7964
28	7964	200	40	160	7804
29	7804	200	39	161	7643
30	7643	200	38	162	7481
31	7481	200	37	163	7318
32	7318	200	37	163	7155
33	7155	200	36	164	6991
34	6991	200	35	165	6826
35	6826	200	34	166	6660
36	6660	200	33	167	6493
37	6493	200	32	168	6325
38	6325	200	32	168	6157
39	6157	200	31	169	5988
40	5988	200	30	170	5818
41	5818	200	29	171	5647
42	5647	200	28	172	5475
43	5475	200	27	173	5302
44	5302	200	27	173	5129
45	5129	200	26	174	4955
46	4955	200	25	175	4779
47	4779	200	24	176	4603
48	4603	200	23	177	4426
49	4426	200	22	178	4248
50	4248	200	21	179	4070
51	4070	200	20	180	3890
52	3890	200	19	181	3709
53	3709	200	19	181	3528
54	3528	200	18	182	3346
55	3346	200	17	183	3162
56	3162	200	16	184	2978
57	2978	200	15	185	2793
58	2793	200	14	186	2607
59	2607	200	13	187	2420
60	2420	200	12	188	2232
61	2232	200	11	189	2043
62	2043	200	10	190	1854
63	1854	200	9	191	1663
64	1663	200	8	192	1471
65	1471	200	7	193	1279
66	1279	200	6	194	1085
67	1085	200	5	195	890
68	890	200	4	196	695
69	695	200	3	197	498
70	498	200	2	198	301
71	301	200	2	198	102
72	102	102		102	0

Thus it will take 6 years to repay the loan