Part 1
Suppose a graduate student receives a non-subsidized student loan of $13,000 for each of the 4 years the student pursues a PhD. If the annual interest rate is 5% and the student has a 10-year repayment program, what are the student's monthly payments on the loans after graduation? (Round your answer to the nearest cent.)
$____________
Part 2
Samuel Ng received a 3-year subsidized student loan of $12,000 at an annual interest rate of 5%. What are Samuel's monthly loan payments for this loan when he graduates from college in 2 years? (Round your answer to the nearest cent.)
$_____________
Part 1
We will use the excel's PMT, PV and FV function to solve the problem
The student receives a non-subsidized student loan of $13,000 for each of the 4 years
Annual Interest rate = 5%
Using excel's FV function to arrive at the total value of loan after 4 years
Hence, total value of loan after 4 years = 56,031.6
This will be repaid over 10 years in monthly instalments
Total no of monthly instalments = 10*12 = 120
Monthly interest rate = (5%/12) = 0.42%
Using Excel's PMT function to arrive at monthly payments :-
Monthly instalments = $594.3
Part 1 Suppose a graduate student receives a non-subsidized student loan of $13,000 for each of...
Lois received a 9-year subsidized student loan of $35,000 at an
annual interest rate of 5.875%. Determine her monthly payment on
the loan after she graduates in 3 years. (Round your answer to the
nearest cent.)
Lois received a 9-year subsidized student loan of $35,000 at an annual interest rate of 5.875%. Determine her monthly payment on the loan after she graduates in 3 years. (Round your answer to the nearest cent.)
You receive a 10-year unsubsidized student loan of $17,000 at an annual interest rate of 6.6%. What are your monthly loan payments for this loan after you graduate in 4 years? (Round your answer to the nearest cent.)
Suppose that you owe $20,000 when you graduate from college. Your Direct Subsidized loan has an annual interest rate of 4.45%. If you want to pay back the entirety of your loan in ten years, what would be your total payment per month? (hint: don’t forget to change the annual rate to a monthly rate for your calculation).
Jefferson qualifies for an income-adjusted monthly payment of $485. If Jefferson has a subsidized student loan of $46,000 at an annual interest rate of 4% (compounded monthly), how many months are required to repay the loan? (Round your answer up to the nearest month.)
Help! how do I entered this using the BA II Plus Texas Instrument calculator? Jeffery Wei received a 7-year non-subsidized student loan of $32,000 at an annual interest rate of 5.6%. What are Jeffery's monthly loan payments for this loan after he graduates in 4 years? (Round your answer to the nearest cent.)
Shirley, a recent college graduate, excitedly described to her older sister the $1,880 sofa, table, and chairs she found today. However, when asked she could not tell her sister which interest calculation method was to be used on her credit-based purchase. Calculate the monthly payments and total cost for a bank loan assuming a one-year repayment period and 14.5 percent interest. Now, assume the store uses the add-on method of interest calculation. Calculate the monthly payment and total cost with...
a. Show a time line of when the loans will be taken. Unsubsidized Stafford Loan Limits Freshman $6,000 Sophomore 6,000 Junior 7.000 Senior 7,000 b. What will be the loan balance when Gavin graduates after his fourth year of school? c. What is the loan balance six months after graduation? d. Using the standard repayment plan and a 6.8 percent APR interest rate, compute the monthly payments Gavin owes after the grace period. integrated mini-case Paying on your Stafford Loan...
Shirley, a recent college graduate, excitedly described to her older sister the $1,490 sofa, table, and chairs she found today However, when asked she could not tell her sister which interest calculation method was to be used on her credit-based purchase. Calculate the monthly payments and total cost for a bank loan assuming a one-year repayment period and 15 percent interest. Now, assume the store uses the add-on method of interest calculation. Calculate the monthly payment and total cost with...
Compare three student loans for $80,000 for 4 years of college. Compare varying student loan offers, their monthly payments and total repayment cost. Three possible examples: Student 1) immediately. A loan at fixed 6.25% that you pay for 10 years starting right away as a normal installment loan, Student 2) Pay interest only. Pay interest at fixed 6.25% for the four years you are in college. Then for 6 years after college, pay the loan as a 6 year installment...
The average student loan debt for college graduates is $25,600. Suppose that that distribution is normal and that the standard deviation is $14,300. Let X = the student loan debt of a randomly selected college graduate. Round all probabilities to 4 decimal places and all dollar answers to the nearest dollar. a. What is the distribution of X? X - NG b Find the probability that the college graduate has between $7,900 and $20,350 in student loan debt. c. The...