Suppose you have three student loans:
- $15,000 with an APR of 8% for 15 years
- $10,000 with and APR of 7.5% for 20 years
- $5,000 with an APR of 9.5% for 10 years
- Calculate the monthly payment for each loan individually. How much do you pay total each month?
- Calculate the total you will pay over the life of the 3 loans
You have the opportunity to consolidate these 3 loans into a single loan with an APR of 8.5% and a term of 20 years.
- What will be your monthly payment if you consolidate?
- How does the payment compare with what you are paying on the three loans individually? Does this result make sense to you?
- What will your total payment be over the life of the loan? What are the pros and cons of doing this consolidation?
Submit a written solution to this problem. Be sure to answer all parts of the problem, and to state your conclusions clearly and explicitly. You may use any information or ideas from the discussion board, but you are expected to write your solution yourself, using your own words to explain your reasoning. Explaining your reasoning in clear, mathematically-accurate language, using complete sentences and proper grammar, are critical to your write up.
|Due By (Pacific Time)
||11/17/2013 06:00 pm