Question

You estimate that you will owe $28,000 in student loans by the time you graduate. The interest rate is 5.00 percent. If you want to have this debt paid in full within 10 years, how much must you pay each month?

Answer 1

the monthly payment is $296.98

Step-by-step explanation:

The computation of the monthly payment is given below:

Given that

Future value be $0

The present value be $28,000

NPER is 10 × 12 = 120

RATE = 5% ÷ 12 = 0.4166%

The formula is given below:

=PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the monthly payment is $296.98