Consider a student loan of $12,500 at a fixed APR of 9% for 30 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.
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- Directions: Looking at the chart below, calculate the monthly interest rate and monthly interest owed on a $5,000 loan for each of the options below. Monthly Interest (loan amount * monthly rate) Amount Financial Monthly Rate (APR/12) Borrowed APR/APY Institution $1,000 $1,000 $1,000 $1,000 $1,000 Bank Loan 5% Credit Union Loan 3% Credit Card 11% Pay Day Loan 18% Title Pawn Loan 21% Part III: Simple v Compound Interest Directions: Use the given scenario to complete the questions. Simple Interest Scenarios: 1. Abigail is saving $1,000 at 4% interest for 3 years, calculated as simple interest. At the end of the three years, how much interest will she have earned? 2. Elijah is borrowing $10,000 at 3.5% interest for 10 years, calculated as simple interest. At the end of the ten years, how much will he owe? 3. Adeline is saving $5,000 at 2.05% interest for 5 years, calculated as simple interest. At the end of the five years, how much will she have in total? 4. Santiago is borrowing $9,000…A department store has offered you a credit card that charges interest at 1.05% per month, compounded monthly. a. What is the nominal interest (annual percentage) rate for this credit card? b. What is the effective annual interest rate?As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) Amount Interest Financed Rate $220,000 7.50% Term of Loan (years) 25 $ Monthly PI Annual Property Tax $6,543 Annual Insurance $2,126 $ Monthly PITI
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