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Balance of loan with the proceeds from bonus

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Juliette recently graduated with an MBA. In August 2017, she borrowed $50,000, and she borrowed another $50,000 in August 2018. Her student loan has an annual interest rate of 2% compounded monthly. Juliette doesn't make any payments on her student debt until she starts a lucrative assignment with Bain in September 2019 when she commences repayment in the amount of $1,000 per month. In January of 2020 she is expecting to get a bonus, and while she will still make her normal $1,000 monthly payment, she is hoping to repay the balance of her loan with the proceeds from her bonus. How big must her bonus be so that she will have completely paid- off the debt at the end of this January?

A). $95,286

B). $95,000

C). $98,073

D). $98,893

Please show work!

Reference no: EM132468072

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