Question

Angelica Reardon received a 4-year non-subsidized student loan of $15,000 at an annual interest rate of 6.3%. What are Angelica's monthly loan payments for this loan after she graduates in 4 years? (Round your answer to the nearest cent.)

Answer 1

Angelica's monthly loan payment will be approximately $346.90.

Step-by-step explanation:

To calculate Angelica's monthly loan payments, we can use the formula for calculating the monthly payment on a loan. The formula is:

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

Where:

• Principal is the loan amount, which is $15,000
• Interest Rate is the annual interest rate, which is 6.3% or 0.063
• n is the number of payments, which is the loan term in years multiplied by the number of payments per year (12 in this case)

Plugging in the values, Angelica's monthly loan payment will be approximately $346.90.