Student Loan Interest Writing Assignment

For this writing assignment make sure to follow the guidelines for writing assignments. Type your responses using $12$ font, $1\mathrm{.}5-2$ spaced and proper margins. Remember that this should be written like a report and not numbered, like a homework assignment.

Student Loans

Part A

Suppose a student takes $4$ years to earn his undergraduate degree and each year needs to take $$5000$ in student loans. Upon graduation, he has a total of $$20,000$ in student loans. All of his loans are consolidated and have an interest rate of $6\mathrm{.}8\%$ annual interest rate compounded monthly. He has $30$ years to pay off the loan.

What will the interest rate be per month? Show how you got this.

Compare the cost of paying down the loan making both the minimum payment and twice this amount. Complete Table $A$ to show the ending balance for each month if he makes the minimum payment of $$150.$ Complete Tab $B$ to show the ending balance for each month if he makes a $$300$ monthly payment, double the minimum payment.

$\backslash$table$[[\backslash$table$[[$Table A: Monthly Balances with a$],[$$$150$ Monthly Payment$]]],[,\backslash$table$[[$Beginning$],[$Balance$]],\backslash$table$[[$Interest$],[$Accrued$]],$Payments,$\backslash$table$[[$Ending$],[$Balance$]],],[1,$$$20000\mathrm{.}00,$$$113\mathrm{.}33,$$$150\mathrm{.}00,$$$19963\mathrm{.}33,],[2,$$$19963\mathrm{.}33,$$$113\mathrm{.}13,$$$150\mathrm{.}00,$$$19926\mathrm{.}46,],[3,$$$19926\mathrm{.}46,,,,],[4,,,,,],[5,,,,,],[6,,,,,],[7,,,,,],[8,,,,,],[9,,,,,],[10,,,,,],[11,,,,,],[12,,,,,]]$

$\backslash$table$[[\backslash$table$[[$Table B: Monthly Balances with a$],[$$$300$ Monthly Payment$]]],[,\backslash$table$[[$Beginning$],[$Balance$]],\backslash$table$[[$Interest$],[$Accrued$]],$Payments,$\backslash$table$[[$Ending$],[$Balanc$]],,],[1,$$$20000\mathrm{.}00,$$$113\mathrm{.}33,$$$300\mathrm{.}00,$$$19813,,],[2,$$$19813\mathrm{.}33,$$$112\mathrm{.}28,$$$300\mathrm{.}00,$$$19625,,],[3,$$$19625\mathrm{.}61,,,,,],[4,,,,,,],[5,,,,,,],[6,,,,,,],[7,,,,,,],[8,,,,,,],[9,,,,,,],[10,,,,,,],[11,,,,,,],[12,,,,,,]]$

During the first year how much has the student paid out of his pocket to the student loan company in $e$ situation?

Of the amount the student paid out of his pocket, how much was used to pay down the debt and how $m$ toward interest for each situation?