Bradley borrowed $72,500 in student loans and he has just graduated from Elon University. He earns enough...

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Bradley borrowed$72,500 in student loans and he has just graduated from ElonUniversity. He earns enough at his new job to allow him to pay $575per month on the loan. If the annual rate on the student loan is4.38% (compounded monthly), how long will it take Bradley to payoff his student loans? Specify the number of months to the nearestwhole number
Chandler found hisdream mountain home, valued at $245,000. He plans to buy a homejust like it when he retires in 15 years. Chandler can earn 6.96percent per year on his investments. Assume that the price of thehouse will increase 2.25 percent per year for the next 15 years.How much must he invest at the end of each month for the next 15years to make the purchase at the end of the 15th year?
A. less than $1,015
B. more than $1,015 but less than $1,080
C. more than $1,080 but less than $1,145
D. more than $1,145 but less than $1,210
E. more than $1,210

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4.1 Ratings (481 Votes)

Bradley The number of months is calculated using the NPER function in Excel with these inputs rate 438 12 annual rate converted into monthly rate pmt 575 monthly payment this is See Answer

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Bradley borrowed$72,500 in student loans and he has just graduated from ElonUniversity. He earns enough at his new job to allow him to pay $575per month on the loan. If the annual rate on the student loan is4.38% (compounded monthly), how long will it take Bradley to payoff his student loans? Specify the number of months to the nearestwhole numberChandler found hisdream mountain home, valued at $245,000. He plans to buy a homejust like it when he retires in 15 years. Chandler can earn 6.96percent per year on his investments. Assume that the price of thehouse will increase 2.25 percent per year for the next 15 years.How much must he invest at the end of each month for the next 15years to make the purchase at the end of the 15th year?A. less than $1,015B. more than $1,015 but less than $1,080C. more than $1,080 but less than $1,145D. more than $1,145 but less than $1,210E. more than $1,210