A student loan of $75,000 carries an interest rate of 6.25%. You want to pay it off with equal monthly payments in 10 years. a. How much is the monthly payment? Round to the nearest cent or two decimal places. b. How much is the total payment? Round to the nearest dollar. c. How much is the interest? Round to the nearest dollar.
Added by Douglas A.
Step 1
To do this, we divide the annual interest rate by 12 (the number of months in a year). Monthly interest rate = 6.25% / 12 = 0.0625 / 12 = 0.005208333 Show more…
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