Suppose you have three loans with outstanding balances/maturity/annual interest rates as follows: ($3,000, 4 years, 7%), ($1,000, 3 years,3%) and ($8,000, 5 years, 4%). Based on the result from b), how do you go about paying off your loans? Following this strategy, when will you have paid off the first loan, when the second, when all of them? How much would you need to pay each month (in increments of 10 cents) to have all loans paid off in two years?

Answer rating: 100% (QA)

To determine the strategy for paying off the loans we should prioritize them based on the highest in... View the full answer