Question

Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. Determine Sandy's quarterly loan payment.

Answer 1

Answer:

Determine Sandy's quarterly loan payment.

$733.88

Explanation:

Period Payment  Capital Interest Loan

   

                                                    12000

1 733,8806175 493,8806175 240 11506,      11938

2 733,8806175 503,7582299 230,1223876 11002,36115

3 733,8806175 513,8333945 220,0472231 10488,52776

4 733,8806175 524,1100623 209,7705552 9964,417696

5 733,8806175 534,5922636 199,2883539 9429,825432

6 733,8806175 545,2841089 188,5965086 8884,541323

7 733,8806175 556,189791 177,6908265 8328,351532

8 733,8806175 567,3135869 166,5670306 7761,037946

9 733,8806175 578,6598586 155,2207589 7182,378087

10 733,8806175 590,233055 143,6475617 6592,145031

11 733,8806175 602,0377169 131,8429006 5990,107314

12 733,8806175 614,0784712 119,8021463 5376,028843

13 733,8806175 626,3600406 107,5205769 4749,668802

14 733,8806175 638,8872415 94,99337605 4110,781561

15 733,8806175 651,6649863 82,21563122 3459,116575

16 733,8806175 664,698286 69,18233149 2794,418289

17 733,8806175 677,9922517 55,88836577 2116,426037

18 733,8806175 691,5520968 42,32852074 1424,87394

19 733,8806175 705,3831387 28,4974788 719,4908015

20 733,8806175 719,4908015 14,38981603 0