You have an outstanding student loan with required payments of $550 per month for the next four years. The interest rate on the loan is 11% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $1250 a month in addition to your required monthly payments of $550, or $300 in total each month. How long will it take you to pay off the loan?

Answer rating: 100% (QA)

To calculate how long it will take to pay off the student loan we can use an amortization formula Th... View the full answer