Answer:
total monthly payment comes out to be $136.886
Step-by-step explanation:
Philip took out a student loan of $25,000 at a 2.4% APR, compounded monthly.
P=$25,000
r=0.024
n=12
n t = 21
If he will begin paying off the loan in 21 months.
First we find the amount of loan in 21 months.
we know,
[tex]A = P(1+\dfrac{r}{n})^{nt}[/tex]
[tex]A = 25000(1+\dfrac{0.024}{12})^{21}\\A = 26071.27[/tex]
So, Randy will pay loan off on $26071.27
Formula for Loan Formula:
[tex]P=\dfrac{PV.r}{1-(1+r)^{-n}}\\P=\dfrac{26071.27\times \dfrac{0.024}{12}}{1-(1+\dfrac{0.024}{12})^{-240}}\\P = 136.886[/tex]
hence, total monthly payment comes out to be $136.886
