Question

jeffery wei received a 6 year non subsidized student loan of 30000 at an annual interest rate of 5.2%. what are jeffery’s monthly loan payments for this loan after he graduates in 4 years

Answer 1

Jeffery's monthly loan payments for the loan will be $515.19.

Step-by-step explanation:

To calculate the monthly loan payments for Jeffrey, we can use the formula for calculating the monthly payment of a loan. The formula is:

Monthly Payment = (Principal * Monthly Interest rate) / (1 - (1 + Monthly Interest rate) ^ (-n))

In this case, Jeffrey's principal is $30,000, the annual interest rate is 5.2%, and the loan term is 6 years. Since Jeffrey will graduate in 4 years, we need to adjust the loan term accordingly. The monthly interest rate can be calculated by dividing the annual interest rate by 12, and the number of monthly payments will be multiplied by 4.

Using these values in the formula, we can calculate the monthly loan payment for Jeffrey.

Monthly Payment = (30000 * 0.052/12) / (1 - (1 + 0.052/12) ^ (-24))

Monthly Payment = $515.19

Answer 2

If the loan interest rate remains at i=5.2%/12 per month throughout the six years,
then amount owing after 4 years, or the future value

`F=30000(1+i)^(4*12)`

`==30000(1+0.052/12)^(48)`

`=36919.80` to the nearest cent

Monthly payment, A, required to repay the loan in two years (24 months)

`(P(i*(1+i)^n))/((1+i)^n-1)`

`=(36919.80(.052/12*(1+.052/12)^(24)))/((1+.052/12)^(24)-1)`

`=1623.03` to the nearest cent.

Answer: Jeffrey will have to repay $1623.03 monthly during the last two years of his loan to owe nothing at the end of the 6 years loan period.