Question

Hiram took out a subsidized student loan of $30,000 at a 3.6% APR

Answer 1

The amount of his monthly payment will be $175.53 ⇒ B

Step-by-step explanation:

The formula of the monthly payment is $M.P=\frac{P(\frac{r}{n})(1+\frac{r}{n})^{nt}}{(1+\frac{r}{n})^{nt}-1}$ , where

• P is the principal investment amount  
• r is the annual interest rate (decimal)
• n is the number of times that interest is compounded per unit t
• t is the time the money is invested or borrowed for

∵ Hiram took out a subsidized student loan of $30,000 at a 3.6% APR

   compounded monthly

∴ P = 30,000

∴ r = 3.6% = 3.6 ÷ 100 = 0.036

∴ n = 12 ⇒ compounded monthly

∵ He will  begin paying off the loan in 21 months with monthly

   payments lasting for 20  years

∴ t = 20

- Substitute all of these values in the formula above

∵ $M.P=\frac{30,000(\frac{0.036}{12})(1+\frac{0.036}{12})^{(12)(20)}}{(1+\frac{0.036}{12})^{(12)(20)}-1}$

∴ $M.P=\frac{30,000(0.003)(1+0.003)^{240}}{(1+0.003)^{240}-1}$

∴ $M.P=\frac{90(1.003)^{240}}{(1.003)^{240}-1}$

∴ M.P = 175.53

The amount of his monthly payment will be $175.53

Learn more:

You can learn more about the compound interest in brainly.com/question/3614284

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Answer 2

Answer:

APEX ANSWER: $175.53

Step-by-step explanation: