The balance on your student loan is currently $20,000. The interest on the loan...
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Accounting
The balance on your student loan is currently $20,000.
The interest on the loan is 3% APR compounded monthly.
You are scheduled to make 60 monthly payments, starting next month.
Alternatively, you can wait and make the same number of payments, but start making payments in month 5. You will have higher new payments due to the interest owed over the 5 months delay in payments.
How much bigger will the new payments be each month?
Group of answer choices
$5.04
$4.77
$5.33
$4.51
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