How much are you paying in total interest over life of loan

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Reference no: EM131577880

1. You expect to graduate with $42900 in student loans. The interest rate on your loan is 4.9 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 27 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first).

2. You are excited to buy your first house. Based on your credit history, the bank is willing to lend you money at 4 percent interest compounded monthly. You can afford monthly payments of $1300. How much can you afford to borrow? Assume the mortgage is for 23 years.

3. You currently have $20000.00 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?

Reference no: EM131577880

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