How much must you pay each month

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Q1 - You estimate that you will owe $54,000 in student loans by the time you graduate. The interest rate is 3.5 percent. If you want to have this debt paid in full within 13 years, how much must you pay each month?

Q2 - Now suppose you decide to defer your payments for 3 years. What will the balance of your loans be when you start to make payments? (Hint: interest will still be charged monthly).

Q3 - Suppose you want to make up for lost time and pay off your debts within 13 years from graduation, despite the deferral. What monthly payment is required to meet this goal?

Reference no: EM133141452

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