Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Briana received a 10-year subsidized student loan of $26,000 at an annual interest rate of 4.125%. Determine her monthly payment (in dollars) on the loan after she graduates in 2 years. (Round your answer to the nearest cent.)

Sagot :

sqdancefan

Answer:

  $264.78

Step-by-step explanation:

The government pays the interest on Briana's loan while she is in school. Her monthly payments will be for a loan of $26,000. The amount of the payment can be found from the amortization formula, or using a calculator or spreadsheet.

Payment amount

For a loan of principal amount P at annual rate r for t years, the monthly payment is ...

  A = P(r/12)/(1 -(1 +r/12)^(-12t)) = $26000(0.04125/12)/(1 -(1 +0.04125/12)^(-120)) = $264.78

Briana's monthly payment after she graduates is $264.78.

View image sqdancefan
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.