Yefim S. answered • 04/13/21

Math Tutor with Experience

PMT = PV(r/n)/[1 - (1 + r/n)^{-nt}] = 60000(0.08/12)/[1 - (1 + 0.08/12)^{-12·25}] = $463.09 per month

Amy W.

asked • 04/13/21Suppose you have a student loan of $60,000 with an APR of 8% for 25 years. What are your required monthly payments?

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Yefim S. answered • 04/13/21

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Math Tutor with Experience

^{-nt}] = 60000(0.08/12)/[1 - (1 + 0.08/12)^{-12·25}] = $463.09 per month

The formula is:

PMT= P(r/n)/(1-(1+r/n)^{-nt})

Where:

PMT = the monthly payment

P = loan amount or the amount borrowed

r= rate

t= time in years

n= number times the money is compounded in a year. Usually n=12 because it's monthly.

PMT = 60000(.08/12)/(1-(1+.08/12)^{-12•25})

**PMT = $463.09**

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