Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He is expected to pay off his loan in 15 years. Round answer to two decimal points a. Under the current terms of his loan what is Derricks minimum payment? b. What is the total amount Derrick will pay when the loan is complete? c. How much will Derrick pay in interest? d. Derrick wants to pay more than the required monthly amount for his loan. Assuming the same conditions of the original student loan what would Derrick new monthly payment would be if he pay off loan in 10 years e. What is the total amount Derrick will pay if they pay off the loan in 10 years? f. With the 10 year loan how much will Derrick pay in interest?

Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He is expected to pay off his loan in 15 years. Round answer to two decimal points a. Under the current terms of his loan what is Derricks minimum payment? b. What is the total amount Derrick will pay when the loan is complete? c. How much will Derrick pay in interest? d. Derrick wants to pay more than the required monthly amount for his loan. Assuming the same conditions of the original student loan what would Derrick new monthly payment would be if he pay off loan in 10 years e. What is the total amount Derrick will pay if they pay off the loan in 10 years? f. With the 10 year loan how much will Derrick pay in interest?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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