Question

Suppose you have the following three student loans: 513,000 with an APR of 8.5% for 17 years $15,000 with an APRoffor 22 years, and $14,500 with an APR of 10% for 12 years Calculate the monthly payment for each loan individually, Calodate the total you'll pay in payments during the life of all tree foors. Abank offers to consolidate your three loans into a single lan with an APR of 9% and a loan term of 22 years. What will your monthly payments be in that case? What will your total payments be over the 22 The monthly payment of the $13.000 om (Do not found until the final answer. Then round to the nearest centas ded) The mostly payment of the $15,000 ans (Do not round the transwer. Then found to the nearest on needed) The most payment of the $14.500 loans (Do not und veral wwwThe round to the recents needed . The total you pay n payments during the tool all three or in Round to the recent smeded) c. The monthly payment of the consolidated an is Do not round the final answer the round to the neares con ded) The wal you pay in payments during the life of the consolidadas Round the newest coased)

Answer 1

THE ANSWER HAS BEEN PRESENTED IN SUPPORTING SHEET. fOR DETAILED ANSWER REFER TO THE SUPPORTING SHEET.

Answer Parta) Monthly Payment for 13000 loan = Amount of loan / present value annuity ( 17*12,,8.5%/12) = 13000 / ((1-(1+8.5%/12)^-204)/(8.5%/12) = 13000 / 107.7247 = $ 120.68 Monthly Payment for 15000 loan = Amount of loan/present value annuity ( 22.12,,9%/12) 15000 / ((1-(1+9%/12)^-264)/(9%/12) 15000 / 114.7876 = $ 130.68 Monthly Payment for 14500 loan = Amount of loan/present value annuity ( 12 12,,10%/12) = 14500 / ((1-(1+10%/12)^-144)/(10%/12) = 14500 / 8.67653 = $ 173.29 Part b) otal repaument of three loans = loan 1+ loan 2 + loan 3 = (120.68*204) + (130.68*264) + (173.29-144) = $ 84072 Part ) Monthly payment of consolidated loan = Amount of loan/present value annuity ( 22*12,9%/12) (14500+15000+13000)/((1-(1+9%/12)-264)/(9%/12) = 42500 /114.7876 = $ 370.25 TOTAL PAYMENTS IN CONSOLIDATED LOAN = MONTHLY PAYMENT . NO. OF INSTALLMENTS = 370.25 (22*12)