The payments described below are compounded monthly.
Suppose you borrow $25,000 on Sept 1, 2006, and another $25,000 on Sept 1, 2007 to finace the portion of tuition and living expenses for graduate school for which your savings are insufficient. Repayment on each of these loans ids deferred until graduation. However, interest of 6.5% (quoted APR) begins accuring immediately (compounded monthly). The fist payment is due Spet 1, 2008. The loan agreement specifies that they loan be repaid in 120 equal monthly installments.
A. What will be the total value of your indebtedness on August 31, 2008 (Assume interest for the last month has accrued but no payments have yet been made) will be . Round your answer to 2 decimals. Do not use a $ sign.
B. The monthly payment will be Round your answer to 2 decimals. Do not use a $ sign