1) How much total interest will Ashley pay over 10 years if she only makes minimum paymentsScenario: Ashley decides to pay 500 total to her student loans each month. She continues the minimum payment on the loan with the lower interest rate and puts the rest of the $500 towards the higher interest rate loan until it's paid off. Then she puts all $500 towards the lower interest rate loan until it is paid off.a) How much total interest will Ashley pay in this scenario?b) How much does she save by increasing her payments in this way ВCDFHKMFormula BarFor both loans:Total of all payments:Total interest paidLoan Set #22$30,996.78$16,200Total Loans$8,131$6,665.780.0445Annual Rate0.0613No. of periods per yearRate per interest periodDuration (no. of periods)Periodic Payment12120.0037083330.005108333120120167.504041190.80249982Beginning BalanceInterestPaymentAmount to PrincipalEnding BalanceBeginning BalanceInterestPavmentAmount to PrincipalEnding Balance16,200.00 $16,092.57 $$60.08 $167.50 $107.43 $16,092.57$8,131.00 $41.54 $90.80 $49.27 $8,081.73$59.68 $167.50 $107.83 $15,984.74$8,081.73 $41.28 $90.80 $49.52 $8,032.2215,984.74 $15,876.52 $$59.28 $167.50 $108.23 $15,876.528,032.22 $41.03 $90.80 $49.77 $7,982.44167.50 $108.63 $40.78 $7,982.44 $7,932.42 $58.88 $15,767.8990.80 $50.03 $7,932.42$15,767.89 $58.47 $167.50 $109.03 $2$40.52 $90.80 $50.28 $50.54 $15,658.867,882.142$15,658.86 $58.07 $167.50 $109.44 $15,549.422$7,882.14 $40.26 $90.80 $7,831.6015,549.42 $15,439.58 $57.66 $90.80 $50.80 $51.06 $167.50 $109.84 $110.25 $15,439.587,831.60 $40.01 $7,780.80$57.26 $167.50 $15,329.337,780.80 $39.75 $90.80 $7,729.7515,329.33 $15,218.67 $7,729.75 $7,678.43 $7,626.85 $56.85 $167.50 $110.66 $111.07 $39.49 $39.22 $15,218.6790.80 $51.32 $7,678.43$56.44 $167.50 $15,107.602$90.80 $51.58 $7,626.85$38.96 $15,107.60 $14,996.12 $14,884.23 $56.02 $167.50 $111.48 $14,996.122$90.80 $51.84 $7,575.01$55.61 $167.50 $111.89 $14,884.237,575.01 $38.70 $90.80 $52.11 $7,522.90$55.20 $167.50 $112.31 $14,771.922$7,522.90 $38.43 $90.80 $52.37 $7,470.5314,771.92 $14,659.20 $7,470.53 $90.80 $52.64 $52.91 $53.18 $54.78 $167.50 $112.72 $14,659.2038.16 $7,417.89$54.36 $167.50 $113.14 $14,546.052$7,417.89 $37.89 $90.80 $7,364.9814,546.05 $53.94 $167.50 $113.56 $37.62 $37.35 $14,432.497,364.98 $90.80 $7,311.8014,432.49 $14,318.51 $14,204.10 $53.52 $167.50 $113.98 $14,318.517,311.80 $90.80 $53.45 $7,258.35$53.10 $167.50 $114.41 $14,204.107,258.35 $37.08 $90.80 $53.72 $7,204.63$52.67 $52.25 $167.50 $114.83 $$7,204.63 $36.80 $90.80 $54.00 $54.27 $14,089.277,150.63$14,089.27 $13,974.02 $13,858.33 $167.50 $115.26 $13,974.027,150.63 $36.53 $90.80 $7,096.35$51.82 $167.50 $115.68 $13,858.337,096.35 $36.25 $90.80 $54.55 $7,041.8054.83 $55.11 $$7,041.80 $6,986.97 $51.39 $167.50 $116.11 $13,742.2235.97 $90.80 $6,986.97$13,742.22 $50.96 $167.50 $116.54 $13,625.682$35.69 $90.80 $6,931.8613,625.68 $13,508.70 $13,391.29 $50.53 $167.50 $116.98 $13,508.706,931.86 $35.41 $90.80 $55.39 $6,876.4755.68 $55.96 $50.09 $167.50 $117.41 $13,391.296,876.47 $35.13 $90.80 $6,820.79$49.66 $167.50 $117.84 $13,273.456,820.79 $34.84 $90.80 $6,764.83$13,273.45 $13,155.16 $167.50 $118.28 $$90.80 $56.25 $56.53 $49.22 $13,155.166,764.83 $34.56 $6,708.5948.78 $167.50 $118.72 $13,036.44$6,708.59 $34.27 $90.80 $6,652.05$13,036.44 $48.34 $167.50 $119.16 $$6,652.05 $6,595.23 $12,917.2833.98 $90.80 $56.82 $6,595.2312,917.28 $12,797.68 $$47.90 $167.50 $119.60 $12,797.682$33.69 $90.80 $57.11 $6,538.12120.05 $6,538.12 $6,480.72 $6,423.02 $6,365.03 $$47.46 $167.50 $12,677.642$33.40 $90.80 $57.40 $6,480.7212,677.64 $47.01 $120.49 $33.11 $90.80 $57.70 $57.99 $167.50 $12,557.146,423.02$12,557.14 $46.57 $167.50 $120.94 $12,436.212$32.81 $90.80 $6,365.0312,436.21 $46.12 $167.50 $121.39 $12,314.8232.51 $90.80 $58.29 $6,306.7412,314.82 $12,192.98 $45.67 $121.84 $6,306.74 $32.22 $90.80 $58.59 $58.88 $167.50 $12,192.986,248.1545.22 $6,248.15 $6,189.27 $$167.50 $122.29 $12,070.692$31.92 $90.80 $6,189.27$12,070.69 $167.50 $122.74 $$90.80 $59.19 $59.49 $44.76 $11,947.9531.62 $6,130.08$44.31 $167.50 $123.20 $31.31 $6,130.08 $6,070.60 $11,947.95 $11,824.7690.80 $6,070.6011,701.1011,576.99$11,824.76 $43.85 $167.50 $123.65 $31.01 $90.80 $59.79 $6,010.80$11,701.10 $43.39 $167.50 $124.11 $6,010.80 $30.71 $90.80 $60.10 $5,950.71$11,576.99 $42.93 $167.50 $124.57 $11,452.422$5,950.71 $30.40 $90.80 $60.40 $5,890.3011,452.42 $11,327.38 $11,201.88 $42.47 $167.50 $125.03 $11,327.382$5,890.30 $30.09 $90.80 $60.71 $5,829.59167.50 $125.50 $125.96 $5,829.59 $5,768.57 $29.78 $90.80 $61.02 $61.33 $42.01 $11,201.885,768.57$41.54 $167.50 $11,075.922$29.47 $90.80 $5,707.235,707.23 $5,645.58 $$11,075.92 $41.07 $167.50 $126.43 $10,949.49$29.15 $90.80 $61.65 $5,645.58$10,949.49 $10,822.59 $40.60 $167.50 $126.90 $10,822.5928.84 $90.80 $61.96 $5,583.62$127.37 $$28.52 $28.20 $40.13 $167.50 $10,695.225,583.62 $90.80 $62.28 $5,521.34$10,695.22 $10,567.38 $39.66 $167.50 $127.84 $10,567.385,521.34 $90.80 $62.60 $5,458.7439.19 $167.50 $128.32 $10,439.065,458.74 $27.89 $90.80 $62.92 $5,395.83

Question

1) How much total interest will Ashley pay over 10 years if she only makes minimum paymentsScenario: Ashley decides to pay 500 total to her student loans each month. She continues the minimum payment on the loan with the lower interest rate and puts the rest of the $500 towards the higher interest rate loan until it's paid off. Then she puts all $500 towards the lower interest rate loan until it is paid off.a) How much total interest will Ashley pay in this scenario?b) How much does she save by increasing her payments in this way ВCDFHKMFormula BarFor both loans:Total of all payments:Total interest paidLoan Set #22$30,996.78$16,200Total Loans$8,131$6,665.780.0445Annual Rate0.0613No. of periods per yearRate per interest periodDuration (no. of periods)Periodic Payment12120.0037083330.005108333120120167.504041190.80249982Beginning BalanceInterestPaymentAmount to PrincipalEnding BalanceBeginning BalanceInterestPavmentAmount to PrincipalEnding Balance16,200.00 $16,092.57 $$60.08 $167.50 $107.43 $16,092.57$8,131.00 $41.54 $90.80 $49.27 $8,081.73$59.68 $167.50 $107.83 $15,984.74$8,081.73 $41.28 $90.80 $49.52 $8,032.2215,984.74 $15,876.52 $$59.28 $167.50 $108.23 $15,876.528,032.22 $41.03 $90.80 $49.77 $7,982.44167.50 $108.63 $40.78 $7,982.44 $7,932.42 $58.88 $15,767.8990.80 $50.03 $7,932.42$15,767.89 $58.47 $167.50 $109.03 $2$40.52 $90.80 $50.28 $50.54 $15,658.867,882.142$15,658.86 $58.07 $167.50 $109.44 $15,549.422$7,882.14 $40.26 $90.80 $7,831.6015,549.42 $15,439.58 $57.66 $90.80 $50.80 $51.06 $167.50 $109.84 $110.25 $15,439.587,831.60 $40.01 $7,780.80$57.26 $167.50 $15,329.337,780.80 $39.75 $90.80 $7,729.7515,329.33 $15,218.67 $7,729.75 $7,678.43 $7,626.85 $56.85 $167.50 $110.66 $111.07 $39.49 $39.22 $15,218.6790.80 $51.32 $7,678.43$56.44 $167.50 $15,107.602$90.80 $51.58 $7,626.85$38.96 $15,107.60 $14,996.12 $14,884.23 $56.02 $167.50 $111.48 $14,996.122$90.80 $51.84 $7,575.01$55.61 $167.50 $111.89 $14,884.237,575.01 $38.70 $90.80 $52.11 $7,522.90$55.20 $167.50 $112.31 $14,771.922$7,522.90 $38.43 $90.80 $52.37 $7,470.5314,771.92 $14,659.20 $7,470.53 $90.80 $52.64 $52.91 $53.18 $54.78 $167.50 $112.72 $14,659.2038.16 $7,417.89$54.36 $167.50 $113.14 $14,546.052$7,417.89 $37.89 $90.80 $7,364.9814,546.05 $53.94 $167.50 $113.56 $37.62 $37.35 $14,432.497,364.98 $90.80 $7,311.8014,432.49 $14,318.51 $14,204.10 $53.52 $167.50 $113.98 $14,318.517,311.80 $90.80 $53.45 $7,258.35$53.10 $167.50 $114.41 $14,204.107,258.35 $37.08 $90.80 $53.72 $7,204.63$52.67 $52.25 $167.50 $114.83 $$7,204.63 $36.80 $90.80 $54.00 $54.27 $14,089.277,150.63$14,089.27 $13,974.02 $13,858.33 $167.50 $115.26 $13,974.027,150.63 $36.53 $90.80 $7,096.35$51.82 $167.50 $115.68 $13,858.337,096.35 $36.25 $90.80 $54.55 $7,041.8054.83 $55.11 $$7,041.80 $6,986.97 $51.39 $167.50 $116.11 $13,742.2235.97 $90.80 $6,986.97$13,742.22 $50.96 $167.50 $116.54 $13,625.682$35.69 $90.80 $6,931.8613,625.68 $13,508.70 $13,391.29 $50.53 $167.50 $116.98 $13,508.706,931.86 $35.41 $90.80 $55.39 $6,876.4755.68 $55.96 $50.09 $167.50 $117.41 $13,391.296,876.47 $35.13 $90.80 $6,820.79$49.66 $167.50 $117.84 $13,273.456,820.79 $34.84 $90.80 $6,764.83$13,273.45 $13,155.16 $167.50 $118.28 $$90.80 $56.25 $56.53 $49.22 $13,155.166,764.83 $34.56 $6,708.5948.78 $167.50 $118.72 $13,036.44$6,708.59 $34.27 $90.80 $6,652.05$13,036.44 $48.34 $167.50 $119.16 $$6,652.05 $6,595.23 $12,917.2833.98 $90.80 $56.82 $6,595.2312,917.28 $12,797.68 $$47.90 $167.50 $119.60 $12,797.682$33.69 $90.80 $57.11 $6,538.12120.05 $6,538.12 $6,480.72 $6,423.02 $6,365.03 $$47.46 $167.50 $12,677.642$33.40 $90.80 $57.40 $6,480.7212,677.64 $47.01 $120.49 $33.11 $90.80 $57.70 $57.99 $167.50 $12,557.146,423.02$12,557.14 $46.57 $167.50 $120.94 $12,436.212$32.81 $90.80 $6,365.0312,436.21 $46.12 $167.50 $121.39 $12,314.8232.51 $90.80 $58.29 $6,306.7412,314.82 $12,192.98 $45.67 $121.84 $6,306.74 $32.22 $90.80 $58.59 $58.88 $167.50 $12,192.986,248.1545.22 $6,248.15 $6,189.27 $$167.50 $122.29 $12,070.692$31.92 $90.80 $6,189.27$12,070.69 $167.50 $122.74 $$90.80 $59.19 $59.49 $44.76 $11,947.9531.62 $6,130.08$44.31 $167.50 $123.20 $31.31 $6,130.08 $6,070.60 $11,947.95 $11,824.7690.80 $6,070.6011,701.1011,576.99$11,824.76 $43.85 $167.50 $123.65 $31.01 $90.80 $59.79 $6,010.80$11,701.10 $43.39 $167.50 $124.11 $6,010.80 $30.71 $90.80 $60.10 $5,950.71$11,576.99 $42.93 $167.50 $124.57 $11,452.422$5,950.71 $30.40 $90.80 $60.40 $5,890.3011,452.42 $11,327.38 $11,201.88 $42.47 $167.50 $125.03 $11,327.382$5,890.30 $30.09 $90.80 $60.71 $5,829.59167.50 $125.50 $125.96 $5,829.59 $5,768.57 $29.78 $90.80 $61.02 $61.33 $42.01 $11,201.885,768.57$41.54 $167.50 $11,075.922$29.47 $90.80 $5,707.235,707.23 $5,645.58 $$11,075.92 $41.07 $167.50 $126.43 $10,949.49$29.15 $90.80 $61.65 $5,645.58$10,949.49 $10,822.59 $40.60 $167.50 $126.90 $10,822.5928.84 $90.80 $61.96 $5,583.62$127.37 $$28.52 $28.20 $40.13 $167.50 $10,695.225,583.62 $90.80 $62.28 $5,521.34$10,695.22 $10,567.38 $39.66 $167.50 $127.84 $10,567.385,521.34 $90.80 $62.60 $5,458.7439.19 $167.50 $128.32 $10,439.065,458.74 $27.89 $90.80 $62.92 $5,395.83

Accepted Answer

Here,
Details of loan is as follows:

Total Payment for both loans is $500 as per scenario
Minimum…