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Latoya\'s balance on a student loans is $24,000 today (first day of month). The

ID: 2774170 • Letter: L

Question

Latoya's balance on a   student loans is $24,000 today (first day of month). The rate on the loan is 6% NAR with monthly compounding. a Latoya would like to payoff the loan in three years.   The first payment would be at the end of the present month. What equal end-of-month payments would she have to make to do this? b Alternatively, Latoya could borrow $24,000 at 4.0% NAR but with weekly compounding and use this to pay off the student loan today. This loan requires an upfront application fee of $1,000 that will be added to the loan amount.   The first monthly payment would be at the end of this month. What would the equal end-of-month payments be on this loan if it was paid off in three years? Latoya's balance on a   student loans is $24,000 today (first day of month). The rate on the loan is 6% NAR with monthly compounding. a Latoya would like to payoff the loan in three years.   The first payment would be at the end of the present month. What equal end-of-month payments would she have to make to do this? b Alternatively, Latoya could borrow $24,000 at 4.0% NAR but with weekly compounding and use this to pay off the student loan today. This loan requires an upfront application fee of $1,000 that will be added to the loan amount.   The first monthly payment would be at the end of this month. What would the equal end-of-month payments be on this loan if it was paid off in three years?

Explanation / Answer

a).

Equal end of month payment is $730.13.

b.)

Equal end of month payment is $704.37