Answered: You owe $19,000 on student loans at an…

You owe $19,000 on student loans at an interest rate of 4.6% compounded monthly. You want to pay off the loan in 6 years. What will your monthly payments be? tA

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

You owe $19,000 on student loans at an interest rate
of 4.6% compounded monthly. You want to pay off
the loan in 6 years.
What will your monthly payments be?
How much interest do you pay?

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