Question

You estimate that you will owe $40,200 in student loans by the time you graduate. If...

You estimate that you will owe $40,200 in student loans by the time you graduate. If you want to have this debt paid in full within 10 years, how much must you pay each month if the interest rate is 4.35 percent, compounded monthly?

N

%

PV

PMT

FV

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Answer #1

Loan amount = $40,200

No of monthly payment = 10 years*12=120

Monthly Interest rate = 4.35%/12 = 0.3625%

Calculating the Monthly Loan PAyment(PMT) using excel "PMT" function:-

So, Monthly Loan PAyment(PMT) is $413.73

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