jeffery wei received a 6 year non subsidized student loan of 30000 at an annual interest rate of 5.2%. what are jeffery’s monthly loan payme

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jeffery wei received a 6 year non subsidized student loan of 30000 at an annual interest rate of 5.2%. what are jeffery’s monthly loan payments for this loan after he graduates in 4 years

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    2021-09-19T08:48:51+00:00

    If the loan interest rate remains at i=5.2%/12 per month throughout the six years, 
    then amount owing after 4 years, or the future value 
    F=30000(1+i)^(4*12)
    ==30000(1+0.052/12)^(48)
    =36919.80    to the nearest cent

    Monthly payment, A, required to repay the loan in two years (24 months)
    \frac{P(i*(1+i)^n)}{(1+i)^n-1}
    =\frac{36919.80(.052/12*(1+.052/12)^{24})}{(1+.052/12)^{24}-1}
    =1623.03  to the nearest cent.

    Answer: Jeffrey will have to repay $1623.03 monthly during the last two years of his loan to owe nothing at the end of the 6 years loan period.

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