Currently, student loans have a payoff time of 25 years at an interest rate of about 7.5% compounded monthly. Suppose the remaining principal of your student loan is $33,760 and the remaining payoff time is 15 years at the 7.5% rate. You recently inherited $40,000 and can't decide if you should pay off your student loan or invest the money in a high yield savings account. Before moving on... Determine the total amount of the loan you will pay back after the remaining 15 years.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Currently, student loans have a payoff time of 25 years at an interest rate of about 7.5% compounded monthly. Suppose the
remaining principal of your student loan is $33,760 and the remaining payoff time is 15 years at the 7.5% rate.
You recently inherited $40,000 and can't decide if you should pay off your student loan or invest the money in a high yield savings
account.
Before moving on...
Determine the total
amount of the loan you
will pay back after the
remaining 15 years.
Transcribed Image Text:Currently, student loans have a payoff time of 25 years at an interest rate of about 7.5% compounded monthly. Suppose the remaining principal of your student loan is $33,760 and the remaining payoff time is 15 years at the 7.5% rate. You recently inherited $40,000 and can't decide if you should pay off your student loan or invest the money in a high yield savings account. Before moving on... Determine the total amount of the loan you will pay back after the remaining 15 years.
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