Solve.
-Determine the total payment over the term of a student loan of $60,097 at a fixed APR of 7% for 20 years.

Question

Quizplus · Accepted Answer

The total payment over the term of a student loan can be calculated using the formula for an annuity, which is the payment per period times the number of periods. The payment per period can be calculated using the formula: P = [r*PV] / [1 - (1 + r)^-n], where P is the payment per period, r is the monthly interest rate (annual rate divided by 12), PV is the present value or principal amount of the loan, and n is the total number of payments (months). For a $60,097 loan at 7% APR for 20 years (240 months), the monthly payment can be calculated and then multiplied by 240 to get the total payment over the term, which is $111,823.54.

Solve. -Determine the Total Payment Over the Term of a Student