You receive a 10-year unsubsidized student loan of $30,000 at an annual interest rate of 5.4%. What are your monthly loan payments for this loan after you graduate in 4 years? (Round your answer to the nearest cent.)
Step 1: | Loan Value after 4 years | ||
FV= PV*(1+r)^n | |||
Where, | |||
FV= Future Value | |||
PV = Present Value | |||
r = Interest rate | |||
n= periods in number | |||
= $30000*( 1+0.054)^4 | |||
=30000*1.23413 | |||
=37024.03 | |||
Step 2: | Calculation of Monthly laon payment | ||
EMI = [P x R x (1+R)^N]/[(1+R)^N-1] | |||
Where, | |||
EMI= Equal Monthly Payment | |||
P= Loan Amount | |||
R= Interest rate per period =5.4%/12 =0.45% | |||
N= Number of periods =6*12=72 | |||
= [ $37024.03x0.0045 x (1+0.0045)^72]/[(1+0.0045)^72 -1] | |||
= [ $166.608135( 1.0045 )^72] / [(1.0045 )^72 -1 | |||
=$603.16 | |||
Please upvote. | |||
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