Question

Simon took out an unsubsidized student loan of $43,000 at a 2.4% APR,

Answer 1

Answer: $241.16

-----------  APEX :)

Answer 2

Answer:

$289.41

Step-by-step explanation:

As we know that the total amount 'A' that is due to pay on loan for a certain interest 'r', principal 'p' and number of times the interest is compounded per year 'n' is:

$A = p (1+\frac{r}{n})^{nt}$

Since, in our case, p = $43,000, r = 2.4% = $\frac{2.4}{100}$ = 0.024, n = 12 (monthly), and t = 20 years.

Therefore,

$A = 43000 (1+\frac{0.024}{12})^{(12)(20)}$

$A = 69457.89$ $

For monthly payment for 20 years,

$A = \frac{69457.89}{(12)(20)}$

$A = 289.407$$ ≈ $289.41

Hence,  the amount of his monthly payment lasting for  20 years at APR of 2.4% on a loan of $43,000 compounded monthly will be $289.41.