A person can choose to work any amount from 0 to 52 weeks per year at a wage of $1000 per week.The government implements a welfa
1 answer:
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Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
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Answer:
each payment will for 4,320.60 dollars
Explanation:
First, we will calculate the future value of the 30,000 two years from now
then we calcaualtethe annuity present value of this to know the student payment
timeline:
<---//----/-/-/-/-/-/-/-/-/-/-/->
loan student payments
the loan futre value will be:
30,000 x 1.06^{2} = 33708
Now we calculate an annuity-due which 10 payment being made at 6% discount rate
This will be an annuity-due because today we are receiving the loan and in excatly 2 years form now we will start the payment so it will be at the beginning of the period
Annuity-due formula
PV $33,708.00
time 10 years
rate 0.06 discount rate
PTM = $ 4,320.601