5. A college student borrows $1500 during her senior year. The loan is to be...
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5. A college student borrows $1500 during her senior year. The loan is to be paid pack in equal monthly payments starting three years after the loan is established (interest accumulates during the grace period). The APR is 2.8% compounded monthly. How much should she expect to pay per month if she only wants to have to make payments for 2 years? 6. Mary has a credit card balance of $4,300 at an APR of 12% compounded monthly. Mary has elected to make interest only payments each month. (A) How much should she expect her monthly payments to be? (B) What will the balance be in her account after 2 years? (C) What would the balance be after 5 years? Mary realizes that this is a bad situation and decides that she wants to pay off the balance in one years time. (D) How much must she pay each month to have a zero balance in the account?
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