PART II: STUDENT LOAN REPAYMENT (30 pts) Suppose a student named Suzy Q Public takes...
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Accounting
PART II: STUDENT LOAN REPAYMENT (30 pts) Suppose a student named Suzy Q Public takes out a student loan for $42,000 at annual interest rate of 4.1%, and suppose Suzy can choose to repay the loan in 25 years or in 10 years. Regardless, payments will be made monthly. (Assume that the debt is amortized by equal periodic payments made at the end of each period.) a) Find the size of each monthly payment assuming the student loan is repaid in 25 years. Show your work, and round to the nearest cent. (8 pts) b) Find the size of each monthly payment assuming the student loan is repaid in 10 years. Show your work, and round to the nearest cent. (8 pts)
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