Find what is the amount of each loan payment

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Problem 1: You estimate that you will have $44,500 in student loans by the time you graduate. The interest rate is 6.5 percent, compounded monthly. If you want to have this debt paid in full within five years, how much must you pay each month?

A. $745.69

B. $873.65

C. $870.69

D. $741.67

E. $880.40

Problem 2: You are buying a previously owned car today at a price of $8,125. You are paying $600 down in cash and financing the balance for 36 months at 7.9 percent, compounded monthly. What is the amount of each loan payment?

A. $198.64

B. $199.94

C. $202.02

D. $214.78

E. $235.46

Reference no: EM132958142

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