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
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