Question

Luella took out an unsubsidized student loan of $37,000 at a 4.8% APR,

Answer 1

The correct answer is : $273.92 APEX

Answer 2

Answer: $272

Step-by-step explanation:

Her amount due = 37,000(1.004)^273

If her monthly payment is x

She'll pay = x(1.004)^240 + x(1.004)^239 + ....x(1.004)^1 + x

= x[(1.004)^241 - 1]/(1.004-1) =

Her payment = Amount due

so

x[(1.004)^241 - 1]/(1.004-1) = 37000(1.004)^273

404x = 37000(1.004)^273 =  110029

x = 110029/404 = $272

Monthly payment = $272