Final answer:
To find the yearly payments for a 15-year student loan with a principal amount of $160,000 and an interest rate of 6.8%, you can use the formula for the future value of an ordinary annuity. Plugging in the values, the yearly payments would be approximately $5,249.43.
Step-by-step explanation:
To find the yearly payments for a 15-year student loan, we can use the formula for the future value of an ordinary annuity. The formula is:
FV = P((1+r)^n - 1)/r
where FV is the future value, P is the principal loan amount, r is the interest rate per period, and n is the number of periods. In this case, P = $160,000, r = 6.8%, and n = 15 years.
Plugging the values into the formula, we get:
FV = 160,000((1+0.068)^15 - 1)/0.068
FV ≈ $5,249.43
So, the yearly payments for the student loan would be approximately $5,249.43.