If you attended Mt. IveySchmivey-with a 4 year tuition of $125,000-and paid a monthly loan payment of $562 (roughly 15% of your $45,000 salary as a social worker), how long would it take you to pay off a student loan at a 5% interest rate?

Question

Business

Tiana Kent

16 December, 12:57

If you attended Mt. IveySchmivey-with a 4 year tuition of $125,000-and paid a monthly loan payment of $562 (roughly 15% of your $45,000 salary as a social worker), how long would it take you to pay off a student loan at a 5% interest rate?

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Answers (2)

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Ernest · Answer 1

Use the formula of the present value of annuity ordinary

A=p [ (1 - (1+I) ^-kn) / I]

Solve for n

N=[log ((AI/p) - 1) / log (1+I) ]/-k equation

A 125000

I 0.05/12

P 562

K 12

Plug in the equation above

N=52.39 years round your answer

N=52.4 years

So the answer is c

Kason Evans · Answer 2

It will 19.5 years.

Tuition=$125,000

Interest rate = 5%

5% of $125,000 = $6,250

$125,000 + $6,250 = $131,250

$131,250/$562 (monthly payment) = 233.540925

233.540925/12 (months in a year) = 19.4617438

round up and it 19.5 years