Math Problem Statement

Suppose you have the following three student​ loans: ​$13 comma 000 with an APR of 7.5​% for 17 ​years, ​$16 comma 000 with an APR of 8​% for 22 ​years, and ​$14 comma 500 with an APR of 9​% for 12 years. a. Calculate the monthly payment for each loan individually. b. Calculate the total​ you'll pay in payments during the life of all three loans. c. A bank offers to consolidate your three loans into a single loan with an APR of 8​% and a loan term of 22 years. What will your monthly payments be in that​ case? What will your total payments be over the 22 ​years? Question content area bottom Part 1 a. The monthly payment of the ​$13 comma 000 loan is ​$    enter your response here. ​(Do not round until the final answer. Then round to the nearest cent as​ needed.)

Solution

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Math Problem Analysis

Mathematical Concepts

Amortization
Interest Rates
Loan Repayment

Formulas

Monthly Payment Formula: M = P * (r(1 + r)^n) / ((1 + r)^n - 1)
Total Payment: Total Payment = Monthly Payment * Loan Term (in months)

Theorems

Amortization Theorem

Suitable Grade Level

College Level, Finance