A student borrows $55 comma 700 at 9.6 % compounded monthly. Find the monthly payment and total interest paid over a 25 year payment plan.

total interest paid I = $ 552,455.77

monthly payment = A / nt = $2,027.18

Explanation:

compound interest formula is given by

A = P (1 + (r/n)) ^ (nt)

where

A = ? (final amount)

P = $55,700

r = 9.6 %

t = (1/12) monthly.

n = 25 year payment plan.

A = $55,700 (1 + (9.6 /12)) ^ (25*12)

total amount A = $608,155.77

total interest paid I = $ 552,455.77

initial principal P = $ 55,700

monthly payment = A / nt = $608,155.77 / 300

=$2,027.18