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Jeffery Wei received a 7-year non-subsidized student loan of $32,000 at an annual interest rate of 5.2%. What are Jeffery's monthly loan payments for this loan after he graduates in 4 years?

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Answer:

Jeffery Wei received a 7-year non-subsidized student loan of $32,000 at an annual interest rate of 5.2%. However, he will graduate in 4 years, which means he will only have to make payments for the remaining 3 years of the loan.

To calculate the monthly loan payments, we can use the formula for calculating the payment on a loan:

Payment = (P * r * (1 + r)^n) / ((1 + r)^n - 1)

where P is the principal (the amount borrowed), r is the monthly interest rate (the annual interest rate divided by 12), and n is the total number of payments (the number of years remaining times 12).

First, we need to calculate the monthly interest rate:

r = 5.2% / 12 = 0.0043333

Next, we need to calculate the total number of payments:

n = 3 * 12 = 36

Now, we can plug in the values:

Payment = (32,000 * 0.0043333 * (1 + 0.0043333)^36) / ((1 + 0.0043333)^36 - 1) = $952.89

Therefore, Jeffery's monthly loan payment after he graduates in 4 years will be $952.89.

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User Charlie Bamford
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