Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a) If Cynthia's bank charges 8.95% interest per year, compounded monthly, determine the present value of the remainder of the loan. per month. b) If the bank is willing to accept early payment, how much interest would Cynthia save by paying back the rest of the loan today?

Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a) If Cynthia's bank charges 8.95% interest per year, compounded monthly, determine the present value of the remainder of the loan. per month. b) If the bank is willing to accept early payment, how much interest would Cynthia save by paying back the rest of the loan today?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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