erwihayes MGMT 273 Fall Quiz: Chapter 5 Quiz Submit Q This Question: 1 pt Or Thi

Question

erwihayes MGMT 273 Fall Quiz: Chapter 5 Quiz Submit Q This Question: 1 pt Or This Quiz: 13 pts possi You ave an o sta nding student loan with re ed payments o $60 per month for the next four years The interest rate on the loan is 9% APR compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month Looking at your budget, you can afford to pay an extra $250 a month in addition to your required monthly payments of $600, or $850 in total each month How long will t take you to pay off the loan? (Note: Be careful not to round any intermediate steps less than six decimal places) The number of months to pay off the loan is (Round to two decimal places ) rt A

Explanation / Answer

Loan=PV(9%/12,4*12,-600)

=24110.87

Time required to pay off the loan=NPER(9%/12, -850,24110.87)=32.01 months

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