A student graduates with a total loan balance of? $30,000 in asingle loan with...

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Accounting

A student graduates with a total loan balance of? $30,000 in asingle loan with monthly payments for a term of 10 years at ?7% APRinterest rate. What is the monthly payment for this? loan? Whatwill the unpaid balance be after 5? years?

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a.	Monthly payment	=	Loan amount	/	Present value of annuity of 1
		=	$ 30,000.00	/	86.12635
		=	$ 348.33

	Working:

	Present value of annuity of 1	=	(1-(1+i)^-n)/i		Where,
		=	(1-(1+0.005833)^-120)/0.005833		i	=	7%/12	=	0.005833
		=	86.1263541		n	=	10*12	=	120

b.	Unpaid balance after 5 years	=	Monthly payment	*	Present value of annuity of 1
		=	$ 348.33	*	50.50199
		=	$ 17,591.13

	Working:

	Present value of annuity of 1	=	(1-(1+i)^-n)/i		Where,
		=	(1-(1+0.005833)^-60)/0.005833		i	=	7%/12	=	0.005833
		=	50.5019935		n	=	5*12	=	60

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In: AccountingA student graduates with a total loan balance of? $30,000 in asingle loan with monthly...A student graduates with a total loan balance of? $30,000 in asingle loan with monthly payments for a term of 10 years at ?7% APRinterest rate. What is the monthly payment for this? loan? Whatwill the unpaid balance be after 5? years?