A thee STUDENT DEBT Analyzing Shawn's Debt 4D: Loan Payments, Credit Cards, and Mortgages 1. Shawn...
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A thee STUDENT DEBT Analyzing Shawn's Debt 4D: Loan Payments, Credit Cards, and Mortgages 1. Shawn was your typical college student. He didn't have monetary support for college from his parents so he took out student loans to further his education. He decided to attend a private Catholic school for 5 years for his Bachelor's Degree and then pursued a Masters Degree in Finance at the University of Denver. Throughout his 7 years of school he accumulated $124,000 in student loan debt. After he graduated he consolidated his loans into one big loan with an APR of 5.6%. a) If Shawn is to pay off his student loans in 20 years, what will his monthly payments be? Recall: PMT- x(APR) n [1-(1+ APR "} b) How much money will Shawn have paid in total after he makes his last payment? c) How much will Shawn have paid in interest after the last payment is made? add- sava wor 2. While in college Shawn decided to live the life of luxury and had a 'spend now, pay later' attitude. He indulged in nice dinners out, season tickets to the Denver Nuggets, and many other luxuries. All together he accumulated $39,700 in credit card debt during this time. Shortly after accruing this debt Shawn also missed a payment to his Visa card. As a result they raised the interest rate (APR) to 30%. a) If Shawn wants to pay off the Visa card in 10 years, what will his monthly payments be? b) How much money will Shawn have paid in total to Visa after he makes his last payment. they c) How much interest did Shawn pay to Visa after his last payment was made? LA STUDENT DEBT adc sav WO Acc hay Plar care 100 ploy ark) ride 3. After graduate school Shawn had a hard time finding a job. He could not make his credit card payments because he was unemployed for over a year. Visa decided that they would work with him during his financial hard times. They offered to let him go payment free for a full year while he looked for work. However, they still would charge him interest on his credit card balance during this time. a) How much will Shawn owe on his Visa card after 1 year off from payments? b) How much will Shawn's monthly payments be in order to pay off the card in 10 years? c) How much money will Shawn have paid in interest after the card has been paid off? VA STUDENT DEBT YOOR VORES €285 ac SE W A thee STUDENT DEBT Analyzing Shawn's Debt 4D: Loan Payments, Credit Cards, and Mortgages 1. Shawn was your typical college student. He didn't have monetary support for college from his parents so he took out student loans to further his education. He decided to attend a private Catholic school for 5 years for his Bachelor's Degree and then pursued a Masters Degree in Finance at the University of Denver. Throughout his 7 years of school he accumulated $124,000 in student loan debt. After he graduated he consolidated his loans into one big loan with an APR of 5.6%. a) If Shawn is to pay off his student loans in 20 years, what will his monthly payments be? Recall: PMT- x(APR) n [1-(1+ APR "} b) How much money will Shawn have paid in total after he makes his last payment? c) How much will Shawn have paid in interest after the last payment is made? add- sava wor 2. While in college Shawn decided to live the life of luxury and had a 'spend now, pay later' attitude. He indulged in nice dinners out, season tickets to the Denver Nuggets, and many other luxuries. All together he accumulated $39,700 in credit card debt during this time. Shortly after accruing this debt Shawn also missed a payment to his Visa card. As a result they raised the interest rate (APR) to 30%. a) If Shawn wants to pay off the Visa card in 10 years, what will his monthly payments be? b) How much money will Shawn have paid in total to Visa after he makes his last payment. they c) How much interest did Shawn pay to Visa after his last payment was made? LA STUDENT DEBT adc sav WO Acc hay Plar care 100 ploy ark) ride 3. After graduate school Shawn had a hard time finding a job. He could not make his credit card payments because he was unemployed for over a year. Visa decided that they would work with him during his financial hard times. They offered to let him go payment free for a full year while he looked for work. However, they still would charge him interest on his credit card balance during this time. a) How much will Shawn owe on his Visa card after 1 year off from payments? b) How much will Shawn's monthly payments be in order to pay off the card in 10 years? c) How much money will Shawn have paid in interest after the card has been paid off? VA STUDENT DEBT YOOR VORES €285 ac SE W
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Related Book For
Introduction to Probability and Statistics
ISBN: 978-1133103752
14th edition
Authors: William Mendenhall, Robert Beaver, Barbara Beaver
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