SOLUTION: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 35000 at the time you start repayment, the interest rate is 6% APR, and you elect the standard repay

Algebra ->  Finance -> SOLUTION: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 35000 at the time you start repayment, the interest rate is 6% APR, and you elect the standard repay      Log On


   

Question 1198909: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 35000 at the time you start repayment, the interest rate is 6% APR, and you elect the standard repayment plan of a fixed amount each month for 10 years. What is your monthly repayment?
Repayment amount =
How much will you pay in interest?
Interest paid =
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
amount of loan is 35000.
interest rate is 6% per year.
loan term is 10 years.
payments are made at the end of each month.
interest rate is compounded monthly.
6% / 12 = .5% per month
number of months = 10 * 12 = 120
monthly payment is 388.57
that's your answer.

i used the calculator at https://arachnoid.com/finance/

results from using that calculator are shown below:



the number of time periods is 10 years * 12 = 120 months.
the interest rate is 6% / 12 = .5% per month.
loan is positive because it's money received.
loan payment is negative because it's money spent.