Suppose you have the following three student loans: $11,000 with an APR of 8.5% for 12 years, $17,000 with an APR of 9% for 17 years, and $13,500 with an APR of 10% for 7 years. a. Calculate the monthly payment for each loan individually. b. Calculate the total you'll pay in payments during the life of all three loans. c. A bank offers to consolidate your three loans into a single loan with an APR of 9% and a loan term of 17 years. What will your monthly payments be in that case? What will your total payments be over the 17 years?

Suppose you have the following three student loans: $11,000 with an APR of 8.5% for 12 years, $17,000 with an APR of 9% for 17 years, and $13,500 with an APR of 10% for 7 years. a. Calculate the monthly payment for each loan individually. b. Calculate the total you'll pay in payments during the life of all three loans. c. A bank offers to consolidate your three loans into a single loan with an APR of 9% and a loan term of 17 years. What will your monthly payments be in that case? What will your total payments be over the 17 years?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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