Question

Ron has $52,000 remaining on his student loan with an annual interest rate of 8%. He plans to pay off the loan in 20

years. Assume that he can refinance his loan at 6%. Use the table below to answer the questions.
a) What are his monthly payments on the original loan? $
b) How much will his new monthly payment be?
$
3 years
4 years
$29.53
$22.58
29.97
23.03
30.42
23.49
31.34
24.41
32.27
25.36
33.21
26.33
Monthly payments on a $1,000 loan.
r
4%
5%
6%
8%
10%
12%
10 years
$10.12
10.61
11.10
12.13
13.22
14.35
20 years
$6.06
6.60
7.16
8.36
9.65
11.01
30 years
$4.77
5.37
6.00
7.34
8.78
10.29

Answer 1

Therefore, the monthly payments would be approximately $359.72 for the original loan and $310.78 for the refinanced loan.

Explanation:

My fav topic I have plenty of loans my self heres the explanation