Student loans and retirement savings interact

Assignment Help Finance Basics
Reference no: EM131412911

Please follow the link below and answer the following Questions:

https://www.bloomberg.com/news/article/2016-03-02/how-to-pay-school-loans-and-save-for-retirement-at-the-same-time

1.) Briefly describe the main idea of this article.  How does student loans and retirement savings interact with other?

2.) Consider the case of Aguilar, who recently graduated from the college with $100,000 in student loans, which he would like to pay off in the next 15 years. Suppose that the bank charges 7% interest rate compounded monthly on this loan. In this case what will Aguilar's monthly payment be?

3.) Now suppose Aguilar works for BP3 which uses a platform called Student Loan genius to let it match $100 per month in Aguilar's debt payments.  So now monthly payment will be your answer in question #2 plus $100.  if the interest rate charged by the bank is still 7% Compounded monthly and the amount of student loan being still $100,000, how many years will it take Aguilar to repay his loan?

Reference no: EM131412911

Questions Cloud

Employees salaries at retirement : Sam Doyle, owner of Doyle's Furniture, Inc., has requested a qualified plan that (1) provides an adequate pension for his employees, regardless of what the stock marketdoes, (2) takes care of employees who have been with him for a long time,
Determine the truth value - hitler ran the third reich : Write the following compound statements in symbolic form, then use your knowledge of the historical events referred to by the simple statements to determine the truth value of the compound statements.- Hitler ran the Third Reich and Nixon did not ..
Identify the alternative actions that are possible : Identify the alternative actions that are possible and the persons and groups (the stakeholders) who will be affected by these actions.For each of the most promising alternatives, determine the benefits and costs to each person or group affected.Se..
Determine the truth value - france bombed pearl harbor : Write the following compound statements in symbolic form, then use your knowledge of the historical events referred to by the simple statements to determine the truth value of the compound statements.- France bombed Pearl Harbor, or Lindbergh cros..
Student loans and retirement savings interact : 1.) Briefly describe the main idea of this article.  How does student loans and retirement savings interact with other?
How a computer program might use this graph to play nim : Discuss how a computer program might use this graph to play Nim.
Determine the truth value - nixon resigned the presidency : Write the following compound statements in symbolic form, then use your knowledge of the historical events referred to by the simple statements to determine the truth value of the compound statements.- Nixon resigned the presidency and Lincoln wro..
What is the big oh performance of your algorithm : The diameter of an unweighted graph is the maximum of all the shortest distances between pairs of vertices in the graph.
Explain how it might be applied in the work environment : Identify an example of new technology.Explain how it might be applied in the work environment.Explain potential benefits of adding this new technology.Explain potential drawbacks of adding this new technology.

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss the concept of risk and how it might be measured

question 1 discuss the concept of risk and how it might be measured. explain how the concept of risk can be

  What happens to the liquidity of the banking system

Suppose the Federal Reserve instructs the Trading Desk to purchase $1 billion of securities. Show the result of this transaction on the balance sheets of the Federal Reserve System and commercial banks. What happens to the liquidity of the banking..

  What are the ebit for the blue wheel project?

What are the EBIT for the Blue Wheel project?

  The current yield to maturity on similar bonds is 12

jim busby calls his broker to inquire about purchasing a bond of disk storage systems. his broker quotes a price of

  You have been approached by your managing director

As an independent financial adviser (IFA), you have been approached by your managing director, who has asked that you investigate how property can be used as an investment for private investors. The managing director recognises there are a number of ..

  Standard deviation of alex s portfolio

"Your client, Alex, has only two assets in his portfolio: assets A and B. Asset A had a standard deviation of 40%, and Asset B has a standard deviation of 20%. 50% of his portfolio is invested in Asset A, and 50% is invested in Asset B. The correl..

  What is the difference between a genotype and a phenotype

What is the difference between a genotype and a phenotype?

  What are the implications for financial statement users

Billionaire investor Warren Buffett was once quoted in the Financial Post saying: "The reaction of weak management to weak operations is often weak accounting."

  What is the current number of education units

The marginal external cost associated with the emissions of sulfur dioxide is estimated to be $30 per pound of this chemical per year. Assume that each ton of steel produced per year results in 5 pounds of sulfur dioxide emissions. Suppose that the s..

  Determine the nominal yield of the bond

A bond with a $114 yearly coupon, maturing in ten years at a value of $1000 has a current market price of $920. Determine the nominal yield of the bond?

  Written description of the complement event

(a) Provide a written description of the complement event of (S OR F). (b) What is the probability of complement event of (S OR F)?

  You are given the following information for calvani pizza

you are given the following information for calvani pizza co. sales 52000 costs 27300 addition to retained earnings

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd