You took out some student loans in college and now owe $12,000. You consolidated the loans...

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You took out some student loans in college and now owe $12,000. You consolidated the loans...

You took out some student loans in college and now owe $12,000. You consolidated the loans into one amortizing loan, which has an annual interest rate of 4% (APR).

Attempt 1/5 for 10 pts.

Part 1

If you make monthly payments of $200, how many months will it take to pay off the loan? Fractional values are acceptable.

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Answer 1

Answer #1

PV of the loan amount = 12,000

Annual rate (rate) = 4%/12

Monthly payment (PMT) = 200

Number of months it will take to pay off the loan (nper) = = 67.05 months = 5.58 years

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Answer 2

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You took out some student loans in college and now owe $12,000. You consolidated the loans...

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